The yen skidded to a seven-month low versus the dollar and a 6-1/2 month low versus the euro on Tuesday on expectations that the Bank of Japan will soon embark on more aggressive policy action. The euro, meanwhile, dipped against the dollar as a downgrade of France's credit rating undercut optimism that eurozone ministers would release funds needed for Greece to pay off its debtholders.
Against the yen, the dollar gained in value for a fifth straight session, appreciating 2.4 percent so far in November, a reflection of expectations that a new Japanese government after a December 16 election could push the Bank of Japan toward more forceful monetary stimulus. The dollar rose to 81.75 yen, its highest since April 20. It last traded at 81.74, up 0.4 percent on the day, according to Reuters data. The euro hit a peak of 104.77 yen, its highest since May 4. It last traded at 104.74, up 0.4 percent on the day. The euro last traded at $1.2814, flat on the day, paring earlier losses after ratings firm Moody's stripped France of its triple-A status late on Monday.
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