USD/JPY Remains Below 118

The yen firmed broadly early on Monday, while commodity currencies softened as worries about the health of the Chinese economy dealt a fresh blow to sentiment already unsettled by a selloff on Wall Street.

The dollar slid to a two-week low of 116.64 yen, down from around 117.52 late in New York on Friday. It has since steadied at 117.17. The euro reached a one-week trough of 132.00 yen, while the Australian dollar plumbed an 11-month low of 90.64 yen.

Investors had already warmed to the safe-yen Japanese currency last Friday after the U.S. economy slowed in the fourth quarter, driving Treasury yields to new lows.


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