The yen fell sharply on Monday as some investors bet that Japanese interest rates would stay far lower than those of other major currencies even after an expected end to the Bank of Japan's ultra-loose monetary policy. The BOJ is seen ending its five-year-old "quantitative easing" policy as early as this week, and many market players expect the central bank to raise rates from virtually zero by the end of the year. But the dollar's failure to hold convincingly below 116 yen last week despite mounting speculation for a BOJ policy shift encouraged investors to pile back into higher yielding currencies including the U.S. and Australian dollars, traders said. "We're seeing continued interest from Japanese investors to sell the yen and go for yield," said Noriyuki Kato, treasury manager at Доллар торговался market has already jumped on the BOJ issue so by the time the fact comes out it could be a non-event." The dollar hit one-month lows against the euro, Swiss franc and sterling on Monday, dented versus the euro-zone's currency by growing expectations that the European Central Bank will keep boosting interest rates. The euro built on a 2 percent gain against the dollar last week, boosted in part after the ECB raised rates to a three-year high and the central bank chief, Jean-Claude Trichet, revised up his inflation forecasts for 2007. By 0610 GMT, the euro was buying $1.2065 , up around 0.2 percent from the level in late New York trade on Friday. It climbed as high as $1.2094 on electric trading platform EBS, a one-month peak. The dollar was trading at 117.00 yen after shooting up a full yen on the day to as high as around 117.15 yen. Traders said that Japanese importers and mutual funds were selling yen and that stop-loss triggers had exacerbated losses. The yen's fall was just as severe against the euro , which broke above key technical resistance at 141 yen and was also up a full yen on the day.