A popular gauge of the U.S. dollar reclaimed some lost ground Monday, driven higher by gains against the Japanese yen and Canadian dollar.

Perceived as a traditional haven asset, the yen softened ahead of the U.S.-North Korea summit in Singapore, which could lead to the denuclearization of the Korean Peninsula. Canada’s currency, meanwhile, bore the brunt of the fallout from the Group of Seven summit in Quebec last weekend, which left President Donald Trump at odds with one the U.S.’s closest allies, deepening a trade rift with Canada.

Don’t miss:Trade spat means more pain in story for Canadian dollar: analyst

What are currencies doing?

The ICE U.S. Dollar Index DXY, +0.10% , which measures the buck against six rivals, inched back into positive territory late Monday and last stood little changed at 93.573. Last week, the index recorded a 0.4% drop. The WSJ Dollar Index BUXX, +0.07% , a broader gauge of the greenback, rose 0.2% to 86.99.

The greenback advanced against Canada’s currency USDCAD, -0.00% , rising to C$1.2982 from C$1.2927 late Friday. The pair touched a session high of C$1.3029.

Japan’s yen USDJPY, +0.08% fell against the dollar, with the buck buying ¥110.06, compared with ¥109.54 late Friday in New York.

Ahead of the Singapore summit between Trump and North Korea leader Kim Jong Un, South Korea’s won USDKRW, +0.11% was in focus. The dollar last bought 1,077.08 won, up from 1,074.93 won late Friday in New York.

Read:Here’s why South Africa could become the next emerging-market carnage

The euro EURUSD, -0.09% climbed to $1.1788 from $1.1771 late Friday in New York, after Italy’s Economy Minister Giovanni Tria said the country’s new coalition government is committed to the euro. The remarks came in an interview with Italian newspaper Corriere Della Serra published Sunday.

Read:Investors should treat the euro rally with caution, analysts say

The British pound GBPUSD, +0.32% fell to $1.3385 from $1.3411 Friday, after economic data showed a sharp 1.1% decline in U.K. factory output in April. This could add to doubts about future interest-rate increases from the Bank of England.

Also see:Why emerging-market investors are swooning over Colombia’s peso

What’s driving the market?

The loonie, as Canada’s currency is also known, was under pressure after Trump and Canadian Prime Minister Justin Trudeau verbally crossed swords after the G-7 summit concluded on Saturday in Charlevoix, Quebec. Trump withdrew his support for the group’s communiqué after Trudeau criticized U.S. tariffs on Canadian metals.

Hostilities between Trump and the leaders of two close allies — Canada and France — had intensified ahead of the meeting, and Trump continued to take aim at the U.S.’s northern neighbor on Monday.

Trump left the G-7 meeting early to travel to Singapore ahead of Tuesday’s much-anticipated meeting with Kim. The first such meeting between a sitting U.S. president and a North Korean leader is scheduled for 9 a.m. Tuesday, Singapore time, or 9 p.m. Monday, Eastern time.

See:Trump will stand firm on denuclearization at North Korea summit, says Pompeo

And check out: Trump rips Canada, NATO in Singapore tweetstorm

This week, there will be plenty of action from the monetary policy front. The U.S. Federal Reserve is widely expected to increase interest rates Wednesday, and the European Central Bank is slated to discuss when it will begin to pare back its bond-buying program at its Thursday convention.

Don’t miss:Investors brace for week packed with Fed, ECB and North Korean drama

What are strategists saying?

“The Canadian dollar is a notable loser following the new low in U. S.-Canadian trading relations. The U.S.-Canadian dollar gapped higher on the open on Sunday…as investors acknowledge that Nafta negotiations will almost certainly have a much harder edge to them following Trump’s early departure from the G-7 summit and castigating tweets aimed at Canadian Prime Minister Trudeau,” wrote Jasper Lawler, head of research at London Capital Group.

“With no high impacting Canadian data due until Thursday, we expect the pair to remain vulnerable to further trade headlines and the dollar to be in the driving seat,” said Lawler.

“The Korean won has been lively in the days before the summit,” said Jameel Ahmad, global head of currency strategy at FXTM, in a note discussing potential winners and losers coming out the summit. “This is potentially as significant for South Korea as it is for North Korea. It is expected that the Korean won would rally as a result of a positive meeting…mainly because it increases the likelihood of further improved relations between North and South Korea,” he said.

“If the summit takes a negative turn, it can’t be ruled out that the Korean won would sell off on market uncertainty that North Korea could return to testing nuclear capabilities,” Ahmad added.