(Updates prices, adds comment)
* Dollar falls 0.8 pct vs yen as U.S. yields, shares fall
* Sterling hits more than two-month lows vs dollar
* Weekend comments from British PM suggest hard Brexit
* Dollar dips vs euro, franc
By Sam Forgione
NEW YORK, Jan 9 The U.S. dollar slumped against
the safe-haven yen on Monday on investors' reduced appetite for
risk, while sterling sank to more than two-month lows on talk
that Britain would drastically rework trade ties with the
European Union after Brexit.
A fall in U.S. Treasury yields and stocks drove the dollar
down as much as 0.8 percent against the yen to a session low of
115.97 yen. The dollar remained within recent trading
ranges and did not test Friday's more than three-week low of
Analysts said there was no fundamental catalyst for the
dollar's decline against the yen, with traders probably reacting
to lower U.S. yields and equities.
"There's an optical relationship with the fact that stocks
are lower," said Shahab Jalinoos, global head of FX strategy at
Credit Suisse in New York.
The dollar also fell against the euro and Swiss franc,
leading the dollar index, which measures the greenback
against a basket of six major currencies, 0.26 percent lower at
The pound slid more than 1 percent against both the dollar
and the euro after weekend comments from
British Prime Minister Theresa May that she was not interested
in keeping "bits of membership" of the European Union.
Sterling slid as low as $1.2125, its weakest against the
dollar since the end of October. It fell about 1.3 percent
against the euro, hitting 86.99 pence per euro, the lowest since
The euro's strength against the pound had a knock-on effect
of pushing the euro higher against the dollar, said Richard
Scalone, co-head of foreign exchange at TJM Brokerage in
"The reason why the euro has been relatively well-bid is
because a lot of people trade euro/sterling," he said. Analysts
also said that some strong European data, including figures
showing German exports rose 3.9 percent in November to mark
their strongest monthly gain since May 2012, supported the euro
against the dollar.
Against the dollar, sterling was last down 1 percent at
$1.2161, while the euro was up 0.4 percent against the
dollar at $1.0567. The dollar was down 0.3 percent against the
franc at 1.0148 francs.
On Wall Street, the benchmark S&P 500 stock index was
down 0.23 percent, while benchmark 10-year U.S. Treasury yields
were last down about four basis points at 2.376
(Reporting by Sam Forgione; Additional reporting by Marc Jones
in London; Editing by Lisa Von Ahn and Meredith Mazzilli)