SINGAPORE: The dollar was poised to register a fourth straight monthly drop on Monday as investors bet on US rates staying low for longer, while the yen steadied on the view that Japan's next leader will stay the course on the 'Abenomics' economic revival programme.
Chief Cabinet Secretary Yoshihide Suga, a long-time lieutenant of Shinzo Abe is in a favourable position, Japanese media reported, as he is expected to get the backing of important factions within his ruling party.
The yen eased by about 0.3% in Asia to 105.62 per dollar, having climbed as far as 104.195 on Friday in the wake of Abe's resignation as prime minister for health reasons. Yen crosses also reeled in some of Friday's leap.
Elsewhere trade was choppy as the boost to Asian currencies from a solid expansion in China's service sector had begun to fade a bit.
Nevertheless, the Australian dollar touched a 21-month peak of $0.7381 and remains set to post a fifth straight monthly rise, its best streak in over a decade and a 34% gain from March's trough.
The New Zealand dollar made a post-Covid high of $0.6749. China's yuan hit a 14-month peak of 6.844 to the dollar in offshore trade as investors cheer the services growth rather than fretting about a stalled rebound in manufacturing.
The euro was steady at $1.1903 and sterling last sat at $1.3342.
Against a basket of currencies the dollar drifted higher to 92.310 in Asia but is down 1.2% for the month. If sustained that would be its worst August in five years and make for the longest run of monthly losses since the summer of 2017.
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