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.
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.
The euro hit a 14-month high against the U.S. dollar and 33-month peak against the yen, the beneficiary of stronger-than-forecast euro zone manufacturing data and expectations of easy monetary policy form Washington and Tokyo.
The euro rose to a 14-month high against the dollar, heading for its best month in over a year as signs of recovery in the euro zone's economy set the currency on a bullish trend.
The U.S. dollar slid to a fresh 14-month low against the euro after the U.S. Federal Reserve kept interest rates near zero and maintained its bond-buying program to spur economic growth.
The euro scaled 14-month peaks against the dollar, gaining in three of the last four sessions, lifted by an improving euro zone outlook and expectations the Federal Reserve will keep its ultra-easy monetary policy for some time.
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.
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.
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.
U.S. Treasury debt prices were trading little changed as a U.S. Republican proposal for a limited rise in the debt ceiling curbed demand for safe-haven assets.
The yen briefly fell against the dollar on Tuesday after the Bank of Japan surprised markets by adopting an open-ended commitment to buy assets, but later regained ground as the new scheme for additional purchases only comes into effect next year.
The yen hit a 2-1/2 year low against the dollar on Friday as markets positioned for the Bank of Japan to take bold action to tackle deflation at a policy-setting meeting early next week.
Norway has shied away from an interest rate hike because the strong krone is already hurting exports, but that allows a housing bubble to keep growing.
The euro rose against the dollar for a third straight session Monday, touching an 11-month high, as investors continued to trade off of diminished expectations of ECB monetary easing.
The euro rose to its highest level since April 2012 against the dollar Friday with investors continuing to trade on the absence of any hints as to future euro zone interest rate cuts.