Tokyo: The yen hit the dollar on Monday, its worst performance against the currency, as investors awaited any signs of official intervention from Tokyo to halt its decline.
According to Yemen News Agency, the yen remained down 0.3 percent at $156.89, close to its lowest level in ten months reached last week, as trading volumes in Asian markets were thin due to a public holiday in Japan.
This decline was a result of a combination of accommodative monetary policies and lower interest rates globally. Japanese Finance Minister Satsuki Katayama intensified her warnings last week about intervention to stop the yen's slide, which provided some support for the currency on Friday, helping it recover from its ten-month low.
Meanwhile, the euro rose 0.2 percent to $1.1531, amid renewed expectations of a US interest rate cut in December. This followed comments by Federal Reserve Chairman John Williams in New York indicating a potential interest rate cut in the near term.
The dollar index remained mostly steady at 100.15, while other major currencies held near their recent lows. The British pound was little changed at $1.3095, ahead of the UK budget announcement last Wednesday, while the New Zealand dollar was steady at US$0.5608, having fallen nearly 8% since July due to deteriorating economic prospects. The Australian dollar was also unchanged at US$0.6457.