The yen fell from its strongest level since August versus the dollar as demand for safer assets amid the fallout from China’s market turmoil waned.
Japan’s currency climbed the most since 2013 last week as an eight-day run of reductions to the yuan’s reference rate through Thursday sent shock waves through financial markets. The euro also declined Monday after China’s central bank kept the currency’s daily fixing stable for the second day in a row. Even so, Asian stocks extended last week’s slide.
The yen weakened 0.4 percent to 117.76 per dollar as of 9:08 a.m. London time, after appreciating for the previous five days. It touched 116.70 earlier, the strongest since Aug. 24. The euro fell 0.3 percent to $1.0890. The 19-nation shared currency gained 0.1 percent to 128.26 yen.