The trough hit on Monday marked a drop of about 3.4 percent from the dollar’s near eight-month high of 114.735 yen set in early November.
Worries about potential delays in the implementation of U.S. tax cuts and the possibility of proposals being weakened have weighed on the greenback in recent weeks.
At the same time, the yen has been supported as risk sentiment has faltered, partly due to weakness in Chinese equities in recent trading sessions.
“The China wobble is not helping global sentiment,” said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.
“China clamping down on … a lot of the shadow banking is a good thing for the long-term, but obviously, there’s going to be a bit of a meltdown in the short term,” Innes said.
Since the low-yielding yen is often used as a funding currency for investment in riskier assets, it tends to be bought back when risk sentiment sours.
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