The dollar index, which measures the currency against six major peers, eased to 111.78, taking it close to Friday's low of 111.68, the weakest level since October 6.The dollar index, which measures the currency against six major peers, eased to 111.78, taking it close to Friday's low of 111.68, the weakest level since October 6.
A retreat this week in long-term Treasury yields also helped support the Japanese currency, but the policy background for yen weakness is likely to be put in stark relief in coming days: the BOJ is expected to stick to monetary stimulus on Friday, while the Fed is likely to raise rates by another 75 basis points on Wednesday of next week.
Economists polled by Reuters expect the pace of rate increases to slow to 50 basis points in December, matching bets in money markets.