Investing.com - The dollar pulled back from session highs against the yen on Monday as concerns over the outlook for global growth clouded market sentiment, shoring up safe haven demand for the yen.
USD/JPY was trading at 106.92, almost unchanged for the day and off session highs of 107.40.
European equities turned lower after Germany’s Bundesbank said the country’s economy barely grew in the third quarter, as industrial output slowed and business sentiment deteriorated.
In its monthly report the German central bank said that while the euro zone’s largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.
The ECB launched its new stimulus program on Monday, purchasing covered bonds in a bid to increase liquidity in the region.
Meanwhile, U.S. equities markets opened lower after quarterly results from IBM fell far short of forecasts.
The single currency remained supported against the dollar, with EUR/USD easing up 0.10% to 1.2773.
Elsewhere, the dollar slipped lower against the pound and the Swiss franc, with GBP/USD rising 0.22% to trade at 1.6127 and USD/CHF sliding 0.15% to 0.9444.
The commodity linked dollars were broadly higher, with AUD/USD up 0.49% to 0.8785, NZD/USD adding 0.58% to trade at 0.7962, while USD/CAD was almost unchanged at 1.1276.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, dipped 0.10% to 85.23, holding above last week’s three-week lows of 84.53.