The JPY and CHF firmed broadly on Monday as US stocks fell on credit-related worries, prompting investors to reduce exposure to risky assets and unwind trades funded by the Japanese and Swiss currencies' low rates. The Yen approached eight-year highs against the Dollar while the Swiss franc rose to roughly two-year peaks against the Euro and was within striking distance of its record high against the Dollar.
Meanwhile, the Dollar was steady against the Euro after Europe's top monetary officials expressed concern about excessive movements in currency exchange rates.
UsdJpy hit a session low of 101.43 at close, -1.22%, one pip over Friday's eight-year low 101.42. EurJpy fell to one-week lows 155.63 down 1.29%.
The high-yielding crosses AudJpy and NzdJpy fell respectively 2.43% to 92.84 and 1.86% to 80.02. EurChf fell more than 0.72% to 1.5621, the lowest since July 2006. UsdChf dropped 0.64% to 1.0187
The Euro's surge was also halted on Monday, after European Central Bank President Jean-Claude Trichet said the central bank was concerned about excessive exchange rate moves. His comments were echoed by Klaus Regling, director-general of the European Commission's monetary affairs department, and Joaquin Almunia, the European Economic and Monetary Affairs Commissioner.