The yen weakened for a third day against the dollar on speculation Japan may expand monetary and fiscal stimulus while a global recovery in risk sentiment sapped haven demand for the currency.

Japan’s currency dropped versus all of its major peers as global equities rallied. The Shanghai Composite Index rose for a second day, after China’s finance ministry pledged to accelerate construction of some major projects and reduce companies’ tax burden.

The yen weakened 0.6 percent to 120.50 per dollar at 5 p.m. New York time, reversing some of the 2.2 percent rally in August. Japan’s currency depreciated 0.6 percent to 135.04 per euro. The shared currency was little changed at $1.1207.

Source: Bloomberg