The Bloomberg Dollar Spot Index rose alongside U.S. Treasury yields on Monday as traders focused on a series of central bank meetings, including decisions from the Federal Reserve, Bank of Canada, and Swiss National Bank. The yen fell to intraday lows after Japan issued a tsunami warning following an earthquake off its northeastern coast, later downgraded to an advisory.

The Bloomberg Dollar Spot Index gained 0.1%, climbing at the start of U.S. stock trading. The 10-year Treasury yield rose about 3.3 basis points to 4.17%.

"Powell’s hawkishness may struggle to surprise investors, as markets have leaned toward dismissing tough talk, while persistently optimistic traders might seize even the slightest dovish hint as evidence that risks are tilting toward a more aggressive rate-cut cycle in the new year," wrote Karl Schamotta, Chief Market Strategist at Corpay, in a Monday note.

Traders continue to expect the Fed to cut rates by 25 basis points on Wednesday, alongside updated economic and rate projections.

The yen weakened to session lows after the earthquake triggered tsunami warnings, with USD/JPY rising 0.4% to an intraday high of 155.99. No issues have been reported at nearby nuclear plants following the quake.

Earlier, Japan’s government confirmed in a revised report that the economy contracted in the three months through September.

EUR/USD was little changed at 1.1641, while GBP/USD held steady at 1.3328. The euro saw a brief lift from ECB’s Isabel Schnabel, who welcomed market bets that the central bank’s next rate move would be a hike—though the momentum faded as she added that such action wouldn’t occur soon.

USD/CAD climbed 0.2% to 1.3849, with the loonie reversing earlier gains amid broad dollar strength. Earlier, one-week risk reversals briefly reached their most bullish level for the Canadian dollar since late September. USD/CAD suffered its worst day since April last Friday following Canada’s strong November jobs report.