• The U.S. dollar slumped against the safe-haven yen on Monday on investors' reduced appetite for risk, while sterling sank to more than two-month lows on talk that Britain would drastically rework trade ties with the European Union after Brexit.
• A fall in U.S. Treasury yields and stocks drove the dollar down as much as 0.8 percent against the yen to a session low of 115.97 yen. The dollar remained within recent trading ranges and did not test Friday's more than three-week low of 115.04 yen.
• The dollar also fell against the euro and Swiss franc, leading the dollar index, which measures the greenback against a basket of six major currencies, 0.26 percent lower at 101.950.
• The pound slid more than 1 percent against both the dollar and the euro after weekend comments from British Prime Minister Theresa May that she was not interested in keeping "bits of membership" of the European Union.
• Sterling slid as low as $1.2125, its weakest against the dollar since the end of October. It fell about 1.3 percent against the euro, hitting 86.99 pence per euro, the lowest since mid-November.
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• The Federal Reserve should consider trimming its $4.5 trillion balance sheet to help raise interest rates more quickly and reduce the negative impact on the economy of a stronger dollar, Eric Rosengren, president of the Boston Fed, said on Monday.
• Recovery from the economic crisis is "largely done," and officials should now turn to addressing longer-term issues like how to boost productivity, Atlanta Federal Reserve bank president Dennis Lockhart said on Monday.
Lockhart said he felt the economy was entering a "transitional" phase, largely healed from the crisis but in need of fresh policies that could encourage investment, improve productivity, and counter the demographic drag of an aging population.
• Oil prices tumbled by 4 percent on Monday on concern that record Iraqi crude exports and rising U.S. output would undermine OPEC's efforts to curb global oversupply.
U.S. crude futures CLc1 settled down $2.03 at $51.96 a barrel, while Brent futures LCOc1 settled down $2.16 at $54.94 a barrel.
In Iraq, OPEC's second-biggest producer, oil exports from the southern Basra ports reached a record high of 3.51 million barrels per day (bpd) in December, the oil ministry said.
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