Japan's yen fell to a month low against the US dollar while the euro gained against both the dollar and the yen as haven currencies were hit by a fresh wave of risk appetite.
The yen fell to the Y112 against the dollar and hit its weakest level of Y122.63 against the euro since mid March.
Political fears ease
Although the yen remains about 4.3% stronger against the dollar over the year due to concerns about Brexit, adjusting to a new US administration and the ongoing French presidential elections, these fears have faded in recent weeks thanks to some encouraging signs from the global economy.
Over the May-Day weekend, there were outbreaks of violence on the streets of Paris. However, the French election - with business-friendly centrist candidate Emmanuel Macron enjoying an 18 point poll lead over the National Front's Marine Le Pen - appeared to have little impact on the euro's progress.
ECB plans in focus
Traders are now more focused on plans by the European Central Bank to start tightening its grip on monetary policy.
Through its quantitative easing programme of bond buying, the ECB's balance sheet has expanded to over €4tn in support of eurozone growth since the financial and credit crises.