By Orla McCaffrey 

The yen rose against the dollar Monday, as investors sought the safe-haven currency after reports that the Trump administration is planning more sanctions on China.

The dollar was recently down 0.3% at Yen109.65. The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was unchanged recently at 87.80.

The Treasury Department is drafting policies that target China's "Made in China 2025" plan to become a global leader in various areas of technology, The Wall Street Journal reported Sunday. The policies, set to be announced by the end of the week, would curb Chinese investment in U.S. technology firms and bar additional tech exports to Beijing.

Investors sometimes buy the yen in times of political or economic uncertainty because they believe it will hold its value better than other assets when markets become volatile.

"Escalating worries about a trade war will likely keep investors wary of straying too far from the relative safety of yen assets," Omar Esiner, chief market analyst at Commonwealth Foreign Exchange, wrote in a note.

The euro was recently up 0.3% against the dollar at $1.1684. In emerging markets, the dollar rose 1.3% against the South African rand and rose 0.4% against the Mexican peso.

(END) Dow Jones Newswires

June 25, 2018 12:41 ET (16:41 GMT)