The safe-haven dollar and Japanese yen edged higher on Monday as violence in the Middle East spooked markets, while a blowout U.S. jobs report gave the greenback a further leg up.

Japan's real wages in August declined for a 17th straight month, government data showed on Friday, as persistent price hikes continued to outpace salaries.

The Bank of Japan could raise its 1% hard cap set for long-term interest rates as its next policy move if the 10-year bond yield threatens to breach that level, Columbia University academic Takatoshi Ito told Reuters in an interview.

Citigroup and J.P.Morgan raised their forecasts for China's annual growth on Wednesday, citing stabilizing economic indicators and Beijing's recent supportive policy measures.

 A 45-day stopgap measure passed by the U.S. Congress to avert a government shutdown has left potential funding shortfalls for strategic Pacific island states, which analysts and former officials say makes the U.S. allies economically vulnerable and possibly more receptive to Chinese approaches.

The number of Americans filing new claims for unemployment benefits rose moderately last week, while layoffs declined in September, pointing to still-tight labor market conditions at the end of the third quarter.