The yen briefly rose to the mid-137 line against the U.S. dollar on Monday in London morning trading, hitting its highest level in about three months, as investors sold the greenback in line with a fall in long-term U.S. Treasury yields.
The yen also gained strength as a safe asset as investors grew risk-averse on fears of a slowdown in the Chinese economy amid a surge in coronavirus cases in the country.
The Japanese currency was trading in the lower-138 zone against the dollar in Tokyo at 5 p.m. Monday. The yen had dropped to a 32-year low in the upper-151 zone versus the dollar in October but started to draw buying since weaker-than-expected U.S. inflation data for October bolstered views that the Fed will slow the pace of its interest rate hikes from December.
