TOKYO: The yen sank to a six-month low against the dollar in Asia Monday as a generally upbeat outlook led dealers into higher-yielding investments, with the euro hitting a four-year high thanks to upbeat German data.
The greenback changed hands at 101.87 yen in Tokyo afternoon trade, well up from 101.23 yen in New York Friday afternoon and its highest level since late May.
The greenback last week topped 101 yen for the first time since July.
The euro was trading at 137.94 yen -- its highest since October 2009 -- against 137.21 yen, while it edged down to $1.3539 against $1.3555.
Sentiment was also giving a lift by Iran's deal with world powers on its nuclear programme, which will see an easing of sanctions on the crude oil producer.
Investors usually move out of the yen, which is considered a safe bet, and into "higher risk" currencies such as the euro when they are feeling confident in the economic outlook.
A slowdown in Japan's third-quarter economic growth has stoked speculation of further easing measures from the Bank of Japan (BoJ), weighing on demand for the yen.
On Friday the German Ifo institute's business climate index -- a key measure of the mood in the industry and trade sectors of Europe's biggest economy -- rose to its highest level in more than 18 months.
The survey, which follows data last week indicating a four-year high in German investment sentiment in November, suggests the economic powerhouse may have regained momentum in the fourth quarter, analysts said.
"Friday's November German Ifo helped buoy the appeal of the euro," National Australia Bank said.
Investors will now turn their focus to eurozone inflation data this week. Data this month showed prices rose at their slowest pace in four years in October, raising the spectre of deflation and prompting the European Central Bank to cut interest rates to a record low of 0.25 percent.
"Inflation from (the) eurozone... will gather most limelight as investors continue to wonder when, and if, the ECB will introduce further easing measures," Credit Agricole said.
Traders will also be keeping an eye on the release of US data due this week, including on consumer confidence, durable goods orders and housing starts.
The dollar was mostly higher against other Asia-Pacific currencies.
It rose to 31.96 Thai baht from 31.83 baht on Friday over political uncertainty in Thailand.
Tens of thousands of anti-government demonstrators marched through the tense Thai capital on Monday in an escalation of mass street rallies aiming to topple Prime Minister Yingluck Shinawatra's embattled government.
The dollar also rose to 1,062.18 South Korean won from 1,060.73 won, to Sg$1.2534 from Sg$1.2507, to 43.91 Philippine pesos from 43.87 pesos, and to Tw$29.61 from Tw$29.57.
The dollar fell to 62.54 Indian rupees from 62.97 rupees while holding steady at 11,729 Indonesian rupiah from 11,728 rupiah.
The Australian dollar fell to 91.44 US cents from 91.91 cents, while the Chinese yuan rose to 16.69 yen from 16.59 yen.
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