The U.S. dollar rallied against Japan's yen on Monday after a report said the Bank of Japan saw little need to end negative interest rates in December, contrary to some investors' expectations.

Meanwhile, China's yuan fell to a three-week low after data showed deflation in the country worsened in November.

The greenback rose as high as 146.46 yen and last bought 146.08 yen, up 0.78%. That reversed some of the steep fall against the Japanese currency late last week, when bets grew that the Bank of Japan may end negative interest rates as soon as next week.

The dollar's rise against the yen helped push the dollar index , which tracks the currency against six peers, up 0.15% to 104.12.

The euro was last flat at $1.0761, not too far from Friday's more than three-week low of $1.0724, while sterling was also little changed at $1.2551.

The yuan weakened to a three-week low in both the onshore and offshore markets on Monday, with the former last at 7.1791 per dollar. The Australian dollar , often used as a liquid proxy for the yuan, fell 0.34% to $0.6555.

Source : Reuters