The yen held near a five-year high versus the dollar on Monday following comments by European Central Bank (ECB) officials last week seen as urging China to revalue its yuan currency.
The dollar was firm against other major currencies except the yen, keeping a considerable distance from its record low versus the euro hit at the end of last year, following strong U.S. industrial production data.The dollar was firm against other major currencies except the yen, keeping a considerable distance from its record low versus the euro hit at the end of last year, following strong U.S. industrial production data.
"The dollar seems to have bottomed out, at least for now," said Hideaki Inoue, manager of forex customer sales at Mitsubishi Trust and Banking Corp. "The market is now focusing on Asian currencies ahead of the G7 meeting on February 4-5."
Traders expect the Group of Seven leading industrial nations to put fresh pressure on China to modify the yuan's virtually fixed exchange rate and allow it to rise against the dollar, which has been falling against other major currencies for the last three years.
As of 1935 EST, the dollar was fetching about 102.10 yen little changed from late Friday U.S. levels and near Friday's five-year low of 101.78.
The euro was around 133.75 yen not far from a four-month low of 133.33 yen hit on Friday and down nearly six percent from its peak of 141.90 hit on Dec. 30.
The yen's latest gains were triggered by comments by ECB officials that Asian currencies, especially China's, should bear a greater share of the burden of adjustments in foreign exchange rates.
Last week, ECB President Jean-Claude Trichet said there is agreement among the G7 that "there is a need for emerging Asia to go progressively in the direction of perhaps progressive and orderly appreciation of the sub-currencies."
Inoue of Mitsubishi Trust said: "The yen is being bought as a hedge against a rise in Asian currencies as trade in many Asian currencies is often illiquid, and some Asian countries are also intervening to curb rises in their currencies."
The euro was around $1.3105 little changed from late Friday U.S. levels but more than four percent off its peak of $1.3670 hit on Dec. 30.
The dollar was supported after data showing U.S. industrial production rose 0.8 percent in December, outstripping expectations for a gain of 0.4 percent.
"The dollar seems to have bottomed out, at least for now," said Hideaki Inoue, manager of forex customer sales at Mitsubishi Trust and Banking Corp. "The market is now focusing on Asian currencies ahead of the G7 meeting on February 4-5."
Traders expect the Group of Seven leading industrial nations to put fresh pressure on China to modify the yuan's virtually fixed exchange rate and allow it to rise against the dollar, which has been falling against other major currencies for the last three years.
As of 1935 EST, the dollar was fetching about 102.10 yen little changed from late Friday U.S. levels and near Friday's five-year low of 101.78.
The euro was around 133.75 yen not far from a four-month low of 133.33 yen hit on Friday and down nearly six percent from its peak of 141.90 hit on Dec. 30.
The yen's latest gains were triggered by comments by ECB officials that Asian currencies, especially China's, should bear a greater share of the burden of adjustments in foreign exchange rates.
Last week, ECB President Jean-Claude Trichet said there is agreement among the G7 that "there is a need for emerging Asia to go progressively in the direction of perhaps progressive and orderly appreciation of the sub-currencies."
Inoue of Mitsubishi Trust said: "The yen is being bought as a hedge against a rise in Asian currencies as trade in many Asian currencies is often illiquid, and some Asian countries are also intervening to curb rises in their currencies."
The euro was around $1.3105 little changed from late Friday U.S. levels but more than four percent off its peak of $1.3670 hit on Dec. 30.
The dollar was supported after data showing U.S. industrial production rose 0.8 percent in December, outstripping expectations for a gain of 0.4 percent.