Early Monday trading in Tokyo saw the dollar make slight gains on the yen as hedge funds sold off the Japanese currency.

The dollar rose from late Friday's peak of 115.81 yen to reach around
115.96 in a trading session described as "quiet" by France's International Herald Tribune.

Analysts are predicting that the greenback will hover between 114.50 and 116.50 for the rest of this week.

Further - though moderate - unwinding of carry trades saw the yen drop slightly against the euro on Monday morning, down to 157.77 from 157.79.

Meanwhile, the dollar may be heading for a turbulent patch in the near future as fallout from the US subprime crisis continues.

Last week saw President Bush and Federal Reserve chairman Ben Bernanke drop hints that measures would be taken to alleviate problems in and caused by the subprime sector.

However, that was qualified somewhat by a statement from both indicating that there would be no help for those who have got into trouble because of "bad decisions".