The dollar slid to its weakest against the yen in more than three months on Monday as expectations of higher U.S. interest rates faded.
The yen’s break past 101 yen per dollar was the first time since November that it has traded stronger than its 200-day moving average. In nominal terms, it is the strongest since early February. That reflected both a dip in U.S. treasury yields in the past week and the dollar’s broader failure to deliver the strength many had expected this year.
But dealers said there were options barriers around 101 and talk of official buyers in Japan around 100 yen. That will block any further push before a two-day meeting of the Bank of Japan starts on Tuesday, they said. The yen moved just above 101 in morning trade before steadying.