The dollar fell to a four-month low against the yen in Asia on Monday, dragged by the impasse in US debt negotiations amid growing fears that the world's biggest economy will default.
The greenback fell as low as 78.12 yen in early trade, the lowest level since March 17 when it was in the 76-yen range, prompting intervention from Japan and its G7 counterparts.
It recovered to 78.47 yen by 0500 GMT in Tokyo against 78.52 yen in New York late Friday.
The euro edged up to $1.4363 from $1.4357 and to 112.73 yen from 112.69 yen after a new eurozone bailout plan for Greece and other measures were seen to reduce the risk of a flaring-up of the debt crisis.
The single currency had slipped to $1.4342 after Moody's downgraded its Greece debt rating to Ca from Caa1, before recovering.
The euro is unlikely to get a major lift as there are signs that the eurozone economy is slowing, Daisuke Uno, chief strategist at Sumitomo Mitsui Banking Corp, told Dow Jones Newswires.
'While the euro is relatively firmer versus the dollar amid the US debt standoff, its topside is capped by lingering concern over (the) eurozone sovereign debt problem,' Kamei said.
Source : New Age
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