The dollar hit a two-week high against the yen on Monday (13 February), after Donald Trump's meeting with Japanese Prime Minister Shinzo Abe passed without incident.

The greenback touched ¥114.13 yen earlier in the session, up from ¥113.22 on Friday night, as investors breathed a sigh of relief after the US president met Abe for the first time since winning the elections in November last year.

"President Trump played golf with Japanese Prime Minister Shinzo Abe, with bonhomie replacing currency wars," said Kit Juckes, head of forex at Societe Generale and IBTimes UK columnist.

"That set the stage for a risk-friendly start to the week, with dollar/yen tracking higher and equities in a buoyant mood across Asia."

However, Juckes warned the markets might be reading too much into Trump's claim that he would release details of "something phenomenal" relating to his tax plans within the next few weeks.

"The more dollar-positive and risk-friendly mood is rooted in the terrifying flakey earth of President Trump's promise last week that he will announce something phenomenal on tax policy in the next two to three weeks," he added.

"With soundbites coming so far ahead of details, markets are unable to avoid over-excitement but of course they are vulnerable to disappointment if the detail doesn't live up to the expectations that grow so easily."

Gains against the yen aside, the dollar was flat against its Canadian and Australian counterparts and edged 0.10% and 0.15% higher against the euro and the Swiss Franc, trading at 0.9403 euro cents and CHF1.0039 respectively.

Meanwhile, the pound began the week on solid footing, climbing 0.22% and 0.17% against the dollar and the euro, to trade at $1.2516 and €1.1771 respectively.

Sterling will be under the spotlight this week, with a number of key economic reports released over the next couple of days, which could shed further light on the UK's economic landscape.

"The latest consumer inflation figures [out on Tuesday 14 February] are expected to show sterling's post-referendum depreciation continues to push inflation higher as it fast approaches the Bank of England's 2% target level," said Chris Saint, senior analyst at Hargreaves Lansdown currency service.

"Wednesday's labour market report and Friday's retail sales data will showcase how wider economic conditions are holding up in the context of continuing Brexit-related uncertainties."