The dollar kicked off the last quarter of the year on the front foot on Monday as the prospect of higher-for-longer U.S. rates provided solid support, pushing the yen to an 11-month low.

Currency moves were subdued in early Asia trade with parts of Australia out for a holiday and China away for its Golden Week, though analysts said a narrowly-averted U.S. government shutdown could bring some relief to markets.

The yen slid to a roughly 11-month low of 149.74 per dollar, as the Japanese currency continued its slow-but-steady decline toward the 150 mark, a level which some see as a line in the sand that would spur Japanese authorities to intervene in the currency market as they did last year.

A summary of opinions at the BOJ's September meeting out on Monday showed policymakers discussed various factors that must be taken into account when exiting ultra-loose policy.

In the broader currency market, the euro lost 0.07% to $1.0565, after ending the previous quarter with a 3% fall, its worst performance in a year.

Sterling was last 0.13% lower at $1.2188, having similarly slid nearly 4% against the dollar in the third quarter.

The U.S. dollar index , however, stood not too far from its recent 10-month high and was last at 106.24, after clocking its best quarterly performance in a year last month thanks to persistently hawkish Federal Reserve rhetoric.

Elsewhere, the Australian dollar fell 0.07% to $0.64305, while the kiwi edged 0.1% lower to $0.59925.

Source : Reuters