The Japanese yen recovered from a nine-month low against the dollar on Monday as investors decided the greenback's 5.5 percent advance against the Japanese currency this month was too far, too fast. Although most analysts expected dollar/yen to rise further in the long term, some believe the dollar may have limited scope to gain much above 82 yen short term, given the possibility of more monetary easing by the US Federal Reserve.
The dollar rose as high as 81.61 yen in early global trade, according to Reuters data, before surrendering gains. It was last down 0.7 percent at 80.42, but still left the dollar with a 5.5 percent gain for the month against the yen. It is the biggest monthly advance since December 2009 at current prices. The euro climbed to 109.89 yen, according to Reuters data, the highest since October 31, before sliding off highs to trade at 107.87, down 1 percent. The euro was down 0.3 percent at $1.3412.