Euro takes up the running against a hapless yen, rising to 111.98 yen, just short of Friday's seven-month highs around 112.07.
-- Dollar back at 125.60 yen after an early spike to a five-month high of 125.87 prompted some profit-taking. -- Dealers remain deeply bearish on the yen as Japanese economic data gets grimmer and grimmer. Latest blow was a shock 10.1 pct drop in machinery orders to a 14-year low, which bodes ill for capital spending.
-- Traders also note the last time the yen was this low Japanese officials spoke out against further weakness, but this time they show no such concern and instead talk about buying foreign bonds. -- Yen under pressure on other crosses as well, with sterling breaking above 180.00 yen for first time in eight months and Swiss franc at highest levels since August 1999.
-- Rise in euro/yen helps single currency creep back above 89 cents , but sentiment still fragile after its failure to gain any capital from Friday's weak U.S. payrolls report.