The dollar gave up some of its recent gains against other major currencies on Monday amid bets the Federal Reserve will slow its stimulus program on signs the world’s biggest economy is accelerating.

Dallas Federal Reserve’s President Richard Fisher told CNBC reporters earlier that a scale back for the Fed’s monthly $85 billion in bond purchases should be the key, as halting it would be “too violent for the market.”

Fishers comment came days after the Federal Reserve Bank of San Francisco’s President John Williams said that quickening economic growth and an improving labor market may prompt the central bank to start pulling its $85 billion of monthly bond purchases by summer.

The U.S. dollar extended gains after Williams commented that quickening economic growth and gains in the labor market may prompt the Fed to begin tapering its bond buying as soon as this summer.

Investors will look to Federal Reserve Chairman Ben Bernanke`s testimony before the Joint Economic Committee of Congress on Wednesday for clues about recent talks over tightening the central bank`s monetary policy.

The greenback is currently trading at 84.12, compared with the session’s opening of 84.26. The USDIX  has so far recorded an intraday high of 84.40 and a low of 84.04.

A softer dollar pushed the euro higher on Monday, off a 6-week low hit on Friday, when figures showed a sharper contraction than expected in the Eurozone economy in the first three months of the year.

The single currency was stronger against the dollar on Monday, yet further gains would be limited given strong expectations the European Central Bank (ECB) will cut its deposit rate below zero in coming months.

The  EURUSD  pair rose to $1.2864, from an opening at $1.2840, after hitting a high of $1.2877, and a low of $1.2819. The trading range for this week is among the key support at 1.2560 and key resistance at 1.3030.

The Japanese yen was one of the strongest risers against the dollar after Akira Amari, Japan’s economy minister, that if the yen weakened much further it could have a negative impact on the economy and would negatively affect people and the government’s job is to minimize that.

Furthermore, the Bank of Japan (BoJ) begins a two-day policy meeting on Tuesday. It is expected to keep policy unchanged.

USDJPY  pair traded today near 102.52 after hitting its high of 102.73. The trading range for this week is among key support at 100.35 and key resistance at 105.05.

EURJPY  pair is currently trading at 131.91 after opening at 131.93.

Asian stocks edged higher on Monday boosted by the record closing high for U.S. equities following the positive consumer sentiment and future economic activity data on Friday. The MSCI Asia Pacific Index gained 1.2% to 144.18 as of 14:47 in Hong Kong.

Japan`s Nikkei hit a new five-and-a-half year high after the government upgraded its economic assessment for the first time in two months. The optimistic economic outlook which boosted sentiment outweighed the effects of the stronger yen.

- Nikkei 225 closed 1.47% higher at 15360.81

- Topix closed 1.30% higher at 1269.51

Australian stocks closed above 5,200 as the continued weakness in the Australian dollar is boosting the stocks with exposure to the U.S market. Investors await Tuesday`s minutes from the latest Reserve Bank of Australia meeting for signs of further stimulus.

- S&P/ASX 200 closed 0.55% higher at 5209.04

- New Zealand’s NZX 50 closed 0.02% higher at 4598.65

In China, the Shanghai Composite rose to an eight-week high after April`s new home prices rose at their fastest pace in two years while in Hong Kong stocks rose more than 1.7% on news of a joint venture by Danone Group.

- Hong Kong’s Hang Seng closed 0.17% higher at 23082.68

- China’s Shanghai Composite Index closed 1.22% higher at 2251.81

The South Korean Kospi moved further away from a six-week high of 1,991 amid rising tensions with North Korea over the weekend; despite international sanctions. Pyongyang tested four short-range missiles for two days in a row.

- Kospi closed 0.22% lower at 1982.43

Japan`s leading Index, an overall gauge of economic performance, came in at 97.7 in March compared with 96.7 a month earlier. The coincident index rose 93.8 in March from 93.3 in February.

North Korea fired two more short-range missiles on Monday, making six launches in three days, defying the international criticism and sanctions.

Although Seoul condemned the launches as it raises tensions in the region, Pyongyang condemned South Korea for criticizing what it said to be a legitimate military drills.

“Our military is conducting these exercises in order to cope with the mounting war measures from the U.S. and South Korea, which is the legitimate right of any sovereign country”, reported North Korea`s KCNA news agency.

Meanwhile, tensions between North Korea and its main alley China are rising over a fishing boat held hostage by armed North Koreans.

While the capturers demand a ransom of nearly $100,000 for the release of the ship and 16 Chinese crew members, some believe the attack could be a retribution for Chinese support of U.N. sanctions.

The incident will complicate the already strained relationship between China and North Korea especially since China has been criticizing Pyongyang for its nuclear test.