On the Tokyo foreign exchange market on Monday, the dollar fell against the yen after the US Federal Reserve hinted that it would halt interest rate hikes.

As of 5 p.m., local time, the US currency was traded at 135.02 to 135.04 yen.

It declined by more than 2.5 yen from the levels before the five-day holidays in Japan.

The euro also slid by nearly two yen to 149.19 to 149.23 yen.

Market sources say investors sold the dollar because of a possible halt to US rate increases.

But they also say currencies were traded within a tight range because some investors bought back the dollar after the US job data for April beat market expectations, which suggest the country's economy remains solid.