Investing.com - The dollar pulled back from seven-week lows against the safe haven yen on Monday as markets stabilized following a broad based selloff in stocks and emerging market currencies on Friday.
USD/JPY was last up 0.29% to 102.63, after falling as low as 101.78 earlier, the weakest level since December 6.
The pair was likely to find support at 101.60, the low of December 6 and resistance at 103.57, Friday’s high.
The selloff in financial markets was triggered after data last week pointed to a steeper than expected slowdown in Chinese manufacturing, fuelling fears that weakness could spread to other emerging market economies.
The Turkish lira fell to the latest in a series of record lows against the dollar on Friday, while South Africa’s rand, the Russian ruble and the Argentine peso fell to multi-year lows against the dollar.
Emerging market currencies have been hard hit since the Federal Reserve announced plans last month to begin scaling back its asset purchase program, while worries over political instability and the outlook for growth for some countries also weighed.
Investors were looking ahead to the outcome of the Fed’s monthly meeting on Wednesday, amid expectations for a reduction in its bond buying program to USD65 billion from the current USD75 billion.
The euro was also higher against the yen, with EUR/JPY rising 0.36% to 140.45, up from six-week lows of 139.20.
Elsewhere, the euro was little changed against the dollar, with EUR/USD inching up 0.04% to 1.3684 from 1.3676 on Friday.