Sharjah24 – Reuters: The dollar rose to its highest in nearly three years versus the yen on Monday as investors remained confident the U.S. Federal Reserve will announce a tapering of its massive bond-buying next month despite softer U.S. payrolls figures.

That jobs data released on Friday pushed U.S. bond yields higher, and so the yen, which is known to be most sensitive to yield differentials, slipped to as low as 112.725 yen per dollar in Asian hours on Monday - a level last seen in December 2018.

"The dollar could rise to around 113 yen. But to extend its gains further to 114 yen would require a much larger rise in the 10-year U.S. Treasuries to nearly 2%, which I don't think likely at this stage," said Jun Arachi, senior strategist at Rakuten Securities.

The Japanese currency was also hurt by a slight tilt towards riskier currencies as sterling and the Australian dollar both gained slightly on the greenback, leaving the dollar's index little changed at 94.154, not far from its one-year high of 94.504 touched earlier this month.