The dollar edged lower but remained close to four-and-a-half year highs against a basket of other major currencies on Monday, as trading was expected to remain quiet with no U.S. economic reports to be released throughout the session. USD/JPY climbed 0.54% to 118.42, holding just below the seven-year peaks of 118.96 reached last Thursday. The pair slid lower on Friday after Japan’s Finance Minister Taro Aso voiced concerns over the weaker yen, saying the speed of the currency’s recent decline against the dollar was “too fast.” Japan’s Prime Minister Shinzo Abe dissolved parliament on Friday, clearing the way for elections to be held on December 15 to seek a fresh mandate for his economic policies, which call for a weaker yen. EUR/USD was up 0.33% to 1.2431, off the almost two-year trough of 1.2363 struck overnight. The single currency found support after a report showed that Germany’s Ifo business climate index rose to 104.7, up from 103.2 in October. Economists had forecast a decline to 103.0. The data eased concerns over the outlook for growth in the euro zone’s largest economy. Euro zone bond yields fell to record lows on Monday amid expectations that the European Central Bank is moving closer to embarking on quantitative easing measures to spur inflation. The yield on Spanish 10-year bonds dropped below 2% for the first time, falling to 1.97%, while the yield on Irish 10-year bonds fell to 1.48% from 1.49% late Friday. ECB President Mario Draghi warned Friday that inflation expectations were declining to levels that were very low and said it is ready to expand its stimulus program to boost inflation as quickly as possible. Elsewhere, GBP/USD added 0.26% but was still close to 14-month lows at 1.5698, while USD/CHF slipped 0.26% to 0.9674. The Australian and New Zealand dollars were lower, with AUD/USD down 0.60% to 0.8620 and NZD/USD falling 0.24% to 0.7863. The commodity exposed dollars were boosted on Friday after China’s central bank unexpectedly cut interest rates for the first time in more than two years in response to signs of a slowdown in the world’s second-largest economy. USD/CAD rose 0.30% 1.1268, holding above Friday’s three week lows of 1.1189. The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was slipped 0.18% to 88.23, not far four-and-a-half year highs of 88.52.