The yen rallied to a three-day high against the dollar on Monday after Japanese Prime Minister Shinzo Abe, as expected, won a decisive victory in elections for parliament's upper house, prompting some investors to sell dollar positions, which had already priced in the win.
The dollar extended losses against the yen on Monday after data showed US existing home sales for June fell 1.2 percent rather than the 0.6 gain expected. But a surge in prices to a five-year high suggested the housing market recovery remained on course. The dollar was down 1.1 percent at 99.53 yen, closer to the session low of 99.28 than the session peak of 100.71 yen.
The euro was down 0.4 percent at 131.37 yen, having risen to a two-month high of 132.43 earlier. The euro rose 0.4 percent to $1.3198, with investors relieved by a drop in Portuguese bond yields after President Anibal Cavaco Silva said on Sunday he wanted the centre-right coalition to stay in place to keep an international bailout on track.
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