The yen advanced to 110 against the dollar, as Japanese stocks tumbled amid concerns over heightening U.S. political turmoil and a global equity rout. The benchmark 10-year yield fell to as low as zero percent as the Bank of Japan maintained bond purchases.
USD/JPY down 0.3% at 110.10; had dropped to 110.0 earlier, the weakest since Aug. 21.
USD/JPY is falling on political uncertainty amid the U.S. government shutdown, says Daisaku Ueno, chief currency strategist at Mitsubishi UFJ Morgan Stanley Securities. There is no incentive to buy stocks just because they are cheap, with most investors away on Christmas and year-end holidays.