The Japanese yen rebounded against the dollar and euro, after another major earthquake hit the northeast of Japan on Monday, the third in just a month.

USD/JPY hit a three-day low of 84.62 during early European trade, before consolidating at 84.70, down 0.04 percent. EUR/JPY fell 0.18 percent to hit 122.52.

Another 7.1 magnitude earthquake hit east and northeast Japan near Honshu on Monday, exactly a month after the deadly, massive magnitude 9.0 earthquake, which triggered the tsunami and nuclear crisis in Japan, a local TV reported.

According to the US geological survey, the 7.1 magnitude onshore quake hit at a depth of just 10 kilometres, and its epicentre was 86 kilometres south-southeast of Fukushima city.

The yen extended its losses, dropping to a multi-month low against the dollar and euro last week, after G-7 nations intervened in the currency markets to weaken yen, following its surge against its major counterparts in the wake of major earthquake hitting the country last month.

Analysts said that global interest rate outlook to put pressure on the future gains of yen.

The Bank of Japan (BoJ) is likely to maintain loose monetary policy to help the economy recover from the earthquakes. The BoJ kept rates unchanged at 0.1 percent during its meeting last week.

In contrast, the European Central Bank (ECB) on last Thursday raised the interest rates by 25 points to 1.25 percent, its first rate hike since July 2008. The single currency is also supported by the expectations on another rate hike in the coming months.

Besides, the Federal Reserve officials have been making hawkish comments recently, raising expectations over hike in key rates in the US.

The Federal Reserve Bank of Chicago President Charles Evans is expected to speak in Tokyo later on Monday.