Dollar Makes Big Gains

The dollar was firm, making some of its biggest gains against the yen on Monday as dealers adjusted their positions ahead of the US Federal Open Market Committee (FOMC) Meeting on Tuesday.

The dollar firmed as far as 109.53, coming within 3/4 yen of two-month highs above 110 it set last week. Against the euro, the dollar was hovering around $0.9150, half a cent away from two-week lows it hit against the single currency on Friday.

Dollar/yen gains lifted euro/yen to day's peaks above 100 yen, with the euro up 3/4 yen on the day.

"What we are seeing is just some position squaring ahead of the FOMC meeting," said a dealer at a European bank in London.