The yen flipped to a loss after the Bank of Japan announced unscheduled bond-purchase operations as yields on the benchmark note climbed to a nine-year high.
USD/JPY rose as much as 0.4% to 141.65 after falling to 140.70 earlier. Interbank desks are monitoring dollar stop-loss buy orders above 141.96, July 21 high and carried over from Friday's BOJ meeting, according to traders.
BOJ said it would buy 300 billion yen ($2.1 billion) of five-to-10 year notes at market yields. That's after it said on Friday it would make its previous 0.5% ceiling a reference point, not a definite limit.
AUD/USD climbed 0.3% to 0.6668 to arrest a three-day slide.
NZD/USD gained 0.2% to 0.6173.
The Bloomberg Dollar Spot Index rose 0.1% while the 2-year Treasury yield note advanced two basis points to 4.9%.
Source : Bloomberg
