Dollar up on Fed tapering view, outperforms yen and franc.
Safe-haven currencies such as the yen and the Swiss franc took a breather on Monday, with both falling against the dollar which benefited from expectations the Federal Reserve may reduce monetary stimulus this week.
A rebound in two-year Treasury yields helped the dollar to 102.55 yen, up 0.2 percent on the day. It had fallen to 101.77 yen, its lowest since early December, in early Asian trade when liquidity was thin.
Despite the recovery, the dollar has shed nearly 2 percent in the past three sessions as investors saw currencies like the yen and the Swiss franc as relatively safe while a sell off in emerging markets assets picked up pace late last week.
The dollar rose against the Swiss franc, bouncing from a one-month low struck on Friday. The euro also rose 0.2 percent to 1.2265 francs having fallen to a one-month low of 1.2227 francs on Friday when demand for the yen and Swiss franc intensified.