The dollar slumped to a record low today after weak US corporate results renewed concerns about a housing market slump damaging the world's largest economy.
The dollar hit a record low against a basket of major currencies and carved out a six-week low near 113.20 yen before recovering slightly. The euro jumped to a record high of about $1.4350.
Asian stocks suffered their biggest fall in two months, and investors in Europe were also in a negative mood, with stock futures and financial bookmakers pointing to sharp opening declines for the FTSE 100, the German Dax and the French CAC 40.
But flight to safety boosted government debt, driving the 10-year yield for Japanese bonds to a one-month low and helping gold claw recover from the session trough.
Traders said shares took their cue from Wall Street, which notched up its biggest fall in two months on Friday.
The dollar was also sold after the tumble in US stocks and following the Group of Seven's apparent indifference over the weakness of the currency. The finance ministers and central bank heads of the G7 countries met in Washington on Friday.