* Dollar, euro, strike multi-year highs against yen
* Aussie lacklustre, at 11-month low against dollar
By Sophie Knight
TOKYO, May 13 The yen resumed its slide on
Monday against the dollar and euro after Japan escaped direct
criticism of its aggressive monetary easing programme at the
Group of seven meeting over the weekend, giving investors a
green light to continue selling the currency.
The dollar last bought 101.81 yen, up 0.2 percent
from late Friday levels in the U.S., after breaking through a
reported options barrier at 102 yen to reach 102.15 in early
Asian trade, its highest level since October 2008.
"There is a feeling of 'at last!' when it passed 100 among
investors who have been selling yen for the last month," said
Bart Wakabayashi, head of forex at State Street.
"Some people see 95 as the base of this trading range but it
is possible 100 could become the bottom from here."
As at previous international meetings, Japan escaped any
censure at the G7 meeting for printing money on a scale that has
pushed the yen sharply lower. Britain's finance minister George
Osborne said that the G7's pledge to not target exchange rates
had been adhered to.
The dollar's breach of the psychologically important 100 yen
level last week was attributed to signs of an improving U.S.
economic landscape, though evidence that Japanese investors are
buying more foreign assets accelerated the yen's plunge.
The Japanese currency has lost 10 percent against the U.S.
currency since the Bank of Japan announced a sweeping monetary
expansion campaign on April 4, and has slid 27 percent since
The euro was steady at 132.28 yen after scaling
132.39 yen, its highest since January 2010. Against the broadly
strong dollar, the common currency dipped 0.1 percent to 1.2973,
close to a one-month low of $1.2935 hit on Friday.
The Australian dollar sagged 0.3 percent on Monday to
$0.9986 after falling below parity on Friday to
$0.9961, its lowest since June 2012.
State Street's Wakabayashi said the Reserve Bank of
Australia's surprise rate cut last week and lowering of its
inflation forecast had somewhat knocked the shine off the
"The most attractive thing about the Aussie was the yield
spread, so if that narrows it is obviously less desirable," he
"Some people feel quite uncomfortable with it being above $1
and prefer to see its range as $0.80-$1," Wakabayashi added.
The Kiwi was also off, losing 0.4 percent to
$0.8273 and hanging near a two-month low tapped in the previous
session after an admission of currency intervention from the
central bank spooked investors last week.