The yen held near six-week highs against the dollar on Monday as fears of economic recession, fanned by inversion of the U.S. bond yield curve, sapped demand for higher-yield, growth reliant assets and drove investors toward "safe" destinations.
With U.S. 10-year yields now almost two basis points below three month yields — a classic recession signal — equities have retreated while the yen and gold prices are up. The yen traded as high as 109.70 against the greenback but eased to trade around flat by 7:40 GMT.
The euro likewise was flat against the dollar at $1.13080, undermined by Friday's dire manufacturing PMI figures and trepidation that Germany's IFO Institute could release a downbeat assessment of Europe's biggest economy at 09:00 GMT.
The currency had risen all the way to $1.14485 last week after the Fed meeting.
Source : Reuters