Dollar slips to four-month low vs yen

TOKYO, Dec 25 (Reuters): The dollar fell against the safe-haven yen and Swiss franc on Tuesday as investors cut their exposure to riskier assets amid the partial US government shutdown and signs of confrontation between the White House and the Federal Reserve.

The dollar fell 0.39 percent to 110.00 yen, its lowest level since late August and is set to fall for an eighth straight session against the Japanese currency, with London and New York shut for Christmas.

The yen also hit a 16-month high against the British pound, trading at 139.90 yen and a four-month high against the euro, at 125.60 yen.

The Swiss franc rose 0.2 per cent against the dollar to a 12-week high of 0.98355 to the dollar, extending its 0.9 per cent rise on Monday, its biggest daily gain in 11 months.

Gold rose to a six-month high of $1,269.30 per ounce on Monday.

US stocks plunged more than 2.0 per cent while oil prices sank more than 6.0 per cent in a holiday-shortened Monday trade, as developments in Washington added to investors' concern about a slowdown in the global economy next year.

"People are saying this is a black Christmas," said a veteran currency trader at a major Japanese bank.

Wall Street's volatility index, which measures the implied volatility of stocks and is often seen as a fear gauge for investors, jumped to 36.10, the highest since Feb 6, when it briefly shot up to as high as 50.30.