Investing.com - The dollar fell to its lowest level in more than three months against the yen on Monday as geopolitical tensions in Ukraine and Vietnam bolstered safe haven demand, and after mixed U.S. data on Friday painted an uneven picture of the economic recovery.
USD/JPY touched lows of 101.11, the weakest level since February 5 and was last down 0.30% to 101.21.
The pair was likely to find support at 100.75 and resistance at 101.59, the session high.
Safe haven demand for the yen was boosted as clashes between Ukrainian government forces and pro-Russian separatists in the east of the country continued on Monday, resulting in the death of one Ukrainian soldier.
Meanwhile, violent anti-Chinese protests continued in Vietnam following a territorial dispute over the South China Sea.
Investors remained cautious ahead of the minutes from the Fed’s latest monetary policy meeting, due for release on Wednesday, as they awaited insight on the central bank's view of the economy.
Data on Friday showed that U.S. housing starts recorded the largest increase in five months in April, indicating that the economy is shaking off the effect of a weather related slowdown over the winter.
However, the upbeat housing data was overshadowed by a report showing that consumer confidence in the U.S. deteriorated this month.
The yen had a subdued reaction after data earlier on Monday showed that Japanese core machinery orders, a key indicator of capital spending, jumped 19.1% in March, compared to expectations of a 6.0% increase.
Elsewhere Monday, the euro was also at three-and-a-half month lows against the yen, with EUR/JPY slipping 0.13% to 138.83, the weakest level since February 7.
The single currency remained under pressure amid growing expectations for fresh monetary easing by the European Central Bank at its next meeting in June, to safeguard the recovery in the euro zone and stop inflation from falling too low.
Recent comments by ECB officials have indicated that the bank is open to easing and is prepared to act swiftly if necessary.
Data late last week showing that the euro zone economy grew at a slower than expected rate in the first three months of the year added to pressure on the bank to act.