The yen touched the weakest in almost six months as demand for the safety of the Japanese currency waned and Asian stocks gained after an accord was struck to set limits on Iran’s nuclear program.
The yen traded near a four-year low against the euro before a report this week that may show Japan’s inflation accelerated in October to the fastest pace since 2008. The dollar strengthened versus most of its 16 major peers before data that may indicate pending home sales rebounded last month.
“There’s a risk-on sentiment in the market after the Iran deal,” said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “The yen is likely to weaken further, and if it breaks the July low of 101.53, the scope for declines will widen.”