The yen steadied slightly off a 2 1/2-year low against the dollar on Monday as option-related buying prompted short-term players to refrain from testing the Japanese currency's downside for now.
Jesper Bargmann, Head of G11 Spot FX, Asia Pacific, RBS Global Banking & Markets says currencies are regaining their status as an attractive asset class. He adds that he won't be surprised if USD/JPY reaches 100 this year.
Fed minutes and the jobs report are big this week for the markets. Discussing whether the economy really has turned a corner, with Michelle Meyer, Bank of America Merrill Lynch, CNBC's Melissa Lee and the Money In Motion traders.
Sterling falls 3.5 percent year to date. Fears of a British "Triple Dip" recession weigh on the pound, with CNBC's Melissa Lee and the Money In Motion traders.
The euro rallied Friday on growing optimism the region's debt crisis has turned the corner, while the yen was headed for its 11th consecutive week of losses.
The yen tumbled 2 percent against the dollar to hit a 2 1/2-year low on Thursday after a Japanese official said the government has no problem with the dollar hitting 100 yen.
SINGAPORE, Jan 24- The safe haven yen slipped and the Australian dollar gained some support on Thursday as an upbeat reading of Chinese manufacturing activity provided an encouraging sign for the global economy.
The yen pushed higher against the euro and dollar on Wednesday, extending gains from the previous day, when monetary easing from Bank of Japan fell short of some expectations for faster, more aggressive action.
Stephen Walters, Chief Economist, Australia at JPMorgan says even though global economic conditions have improved recently, he expects the Reserve Bank of Australia to cut interest rates in February. He says the RBA should focus on the weakening domestic economy at its meeting.
The yen soared 1 percent against the dollar and euro on Tuesday after the Bank of Japan said its open-ended commitment to buy assets would kick in only next year.