The dollar on Monday tumbled below the 110-yen level for the first time in 18 months as jitters over the US subprime mortgage crisis led investors to seek out safe havens, dealers said.
The US unit hit 109.85 yen in Tokyo trade, dropping below the psychologically important 110 level for the first time since May 2006 as speculators exited risky trades.
Later, in European trade, the yen stood at 110.31 yen, down from 110.66 in New York late on Friday.
The euro meanwhile weakened against both the yen and dollar. Last week the European single currency struck an historic high of 1.4752 dollars.
"The dollar's fall was triggered by a slide in global stocks and the inability of investors to assess further losses at major US and European banks" due to the subprime loans crisis, said Hachijuni Bank strategist Yoshifumi Suzuki.
"Traders have been reducing risk by buying back the yen," he added.
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