Investing.com - The dollar fell to fresh one-month lows against the yen on Monday, briefly dropping below the 103 level amid heightened expectations that the Federal Reserve will maintain loose monetary policy in the wake of the latest U.S. jobs report.
USD/JPY hit lows of 102.97, the weakest level since December 18 and was last down 0.81% to 103.32.
The dollar remained weaker against the yen after the latest employment report showed that the U.S. economy added 74,000 jobs in December, the smallest increase since January 2011 and well below expectations for 196,000 new jobs.
The surprisingly weak data sparked concerns that the Fed will adopt a more cautious approach to scaling back its stimulus program, after cutting it by USD10 billion in December, reducing it to USD75 billion-a-month.
Elsewhere, the dollar edged higher against the euro, with EUR/USD slipping 0.18% to 1.3644.
In the euro zone, data on Monday showed that Italian industrial output rose for a third consecutive in November, rising 0.3% from a month earlier.
Meanwhile, Italian borrowing costs fell to the lowest level since the creation of the euro on Monday, as investors continued to regain confidence in the euro zone periphery.
The dollar extended gains against the pound, with GBP/USD down 0.67% to 1.6370 and edged higher against the Swiss franc, with USD/CHF inching up 0.11% to 0.9033.
AUD/USD was up 0.71% to a one-month high of 0.9042 and NZD/USD advanced 0.75% to trade at seven week highs of 0.8364.
Elsewhere, USD/CAD slipped 0.19% to 1.0871, pulling away from the four year highs of 1.0944 struck on Friday.
The Canadian dollar remained under heavy selling pressure after data on Friday showed that the Canadian economy unexpectedly shed 45,900 jobs last month. The weak data reinforced expectations that the Bank of Canada will stick to its dovish stance on interest rates.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.04% to 80.77.