Investing.com - The dollar slid lower against the safe-haven yen on Monday as investors weighed rising geopolitical tensions in Asia and the prospect of a rate hike from the Federal Reserve later this month.
USD/JPY was down 0.38% at 113.61 at 08.31 GMT, off Friday’s high of 114.73.
Demand for the yen was boosted after North Korea conducted missile tests early Monday, dampening risk appetite.
The dollar retreated from five-week highs against a currency basket on Friday as investors took profits after Fed Chair Janet Yellen said a rate hike "would likely be appropriate" this month if the economy remains on track.
The remarks cemented the view that the Fed will raise interest rates at its next meeting on March 14-15, following a series of hawkish comments by Fed policymakers earlier in the week.
Futures traders are pricing in around an 82% chance of a hike at the Fed's March meeting, according to Investing.com’s Fed Rate Monitor Tool.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 101.32.
Political developments in the U.S. continued to dampen demand for the dollar after U.S. President Donald Trump on Saturday accused Barack Obama of wiretapping him during the 2016 election campaign.
Investors feared that the controversy would detract attention from economic policy issues.
EUR/USD was at 1.0626, holding below an overnight high of 1.0640 as investors continued to monitor developments in the French presidential election campaign.
Sterling was lower, with GBP/USD down 0.29% at 1.2267.