The Japanese yen climbed against the dollar on Monday, but stood below a five-month peak as a jump in U.S. equities late last week put a dent on demand for traditional safe haven currencies.
The dollar eased 0.1 percent to 108.70 yen, but remained above Friday’s low of 108.05 yen, its weakest level since Sept. 11. The dollar last week lost almost 1.3 percent versus the yen.
The U.S. S&P 500 rose 1.5 percent on Friday, ending a wild week with a burst of buying, but still marked the worst week in two years. Despite the bounce, investors were bracing for more volatile trading days ahead.
S&P 500 e-mini futures climbed and were 0.5 percent higher.
The yen had increased last week as global equity markets slumped and volatility jumped – moves that came after U.S. bond yields soared on heightened worries about inflation.
The dollar index, which tracks the greenback against a basket of six major rivals, eased 0.4 percent to 90.105 after increasing 1.4 percent the previous week.
The euro climbed 0.3 percent to $1.2290. Last week, the single currency fell 1.6 percent, its worst weekly performance since November 2016, as declining risk appetites and higher volatility caused market players to reduce their positions.
The euro was susceptible to such position-squaring because a popular trade before the recent market upheaval had been to buy the euro on expectations of the European Central Bank unwinding monetary stimulus.
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