Hopes that the U.S. government would soon resume work strengthened the dollar against the Japanese yen, which is traditionally considered a safe haven asset. At the same time, domestic factors also played a role for both currencies.

The USD/JPY pair approached the nine-month highs reached earlier.

Japanese Prime Minister Sanae Takaichi said on Monday that she intends to develop a new budget target for several years ahead. Separately, the Bank of Japan noted that "the fog shrouding Japan's economic outlook has begun to dissipate compared to July," potentially paving the way for a rate hike by the end of the year. However, these hints don't seem to be enough for the market - the yen continues to weaken for now.