The yen fell versus most of its major peers while currencies of commodity exporters extended their advance on speculation China may increase economic stimulus.

The Australian dollar jumped, while the Shanghai Composite Index rallied 3.2 percent after a Chinese report showed that the world’s second-largest economy slowed in December. The Canadian dollar halted a 12-day decline.

The yen was little changed at 117.33 per dollar as of 2:17 p.m. in New York after declining 0.3 percent on Monday. Japan’s currency is still about 2 percent stronger this year, as concern China’s economy was slowing triggered a rout in stocks around the world and fueled demand for haven assets.

Implied three-month volatility for the yen also dropped for a second day, to 9.70 percent, after rising to 10.34 percent on Jan. 15, the most on a closing basis since October.

Source : Bloomberg