The yen fell to its weakest level in almost three months after Japan's ruling coalition failed to win a majority in parliament at the weekend's election. Crude tumbled after Israeli strikes on Iran avoided oil facilities.

The Japanese currency fell as much as 0.6% to 153.27 per dollar Monday as political instability looms after a gamble by Prime Minister Shigeru Ishiba to call a snap election backfired. The country's stocks rose in early trade, aided by a weaker yen's benefits to an export-oriented economy. 

The election result "opens risks for a hung parliament and so further fiscal spending," Bob Savage, head of markets strategy and insights at BNY, wrote in a note to clients. "The markets are likely to think this means more trouble for the yen, with 155 per dollar the first target."

Crude plunged after Iran said its oil industry was operating normally after Israel struck military targets across the country. Brent crude dropped and West Texas Intermediate fell by more than 5% in early trading before paring declines. Gold edged lower.

Source : Bloomberg