The dollar climbed to a more than six-month high against the yen on Monday on speculation the Bank of Japan may expand its already massive economic stimulus.
The euro fell against the dollar and hit an 11-month low against the British pound after data showed disappointing manufacturing growth in France and Spain.
Japan's central bank is looking to go beyond its $70 billion-a-month bond-buying operation, according to officials briefed on the process.
Options include major purchases of stock market linked funds or other assets riskier than Japanese government bonds (JGBs), the insiders said.
The dollar rose as high as 103.03 yen, the strongest since May 23, according to Reuters data, and was last up 0.6 percent at 102.98 yen.
The euro rose 0.3 percent to 139.49 yen.
Against the dollar, the euro shed 0.3 percent to $1.3543 , retreating from Friday's one-month high of $1.3621.
The eurozone manufacturing PMI rose to 51.6 last month from October's 51.3, just pipping an earlier flash reading of 51.5. But France's PMI sank to a five-month low of 48.4 from 49.1, while Spain's manufacturing sector shrank.
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