Investing.com - The dollar slid lower against the yen on Monday as weak Chinese factory data added to concerns over slowing growth in the world’s second-largest economy, sapping risk appetite.
USD/JPY was last at 120.50 after falling to overnight lows of 120.26.
Data on Monday showed that China’s Caixin manufacturing purchasing managers’ index edged up to 48.3 in October from 47.2 in September.
It was the eighth straight month that the index remained below 50, which is the cut-off point between expansion and contraction.
The report came one day after data showing that China’s official manufacturing PMI contracted for the third month in a row in October.
The weak data sent shares in Tokyo lower, bolstering demand for the safe haven yen.
The euro was firmer against the dollar, with EUR/USD up 0.22% to 1.1028.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.12% to 96.88.
Investors were turning their attention to Friday U.S. nonfarm payrolls report for indications on the likelihood of a December rate hike.
The Federal Reserve left rates on hold last week but indicated that it could still raise interest rates for the first time since 2006 at its December meeting.
Meanwhile, the Institute of Supply Management was to release data on U.S. manufacturing activity later in the day.