The yen rose to a one-week high against the dollar and climbed against the euro as a decline in stocks prompted investors to pare holdings of higher-yielding assets funded in the Japanese currency.
The yen gained against the Australian dollar and the British pound on concern oil prices above $129 a barrel and widening credit-market losses will hamper global growth. The dollar fell against the euro on concern Federal Reserve minutes due today will highlight concern the U.S. economy will slow.
The euro gained yesterday against the dollar by the most in more than a month as Wolfgang Franz, president of the ZEW Center for European Economic Research and one of five economic advisers to the German government, said the European Central Bank may have to ignore the economy's weakness and increase interest rates to curb inflation.
EUR/USD tested $1.5680, but failed to break above and retreated to $1.5630/40.
GBP/USD weakens from $1.9700 to $1.9630.
USD/JPY printed low at Y103.10, sliding from Y103.70.
A report due at 10 a.m. in Munich today from the Ifo institute is forecast to show the business-climate index in Europe's biggest economy fell to 102 in May from 102.4 in April and 104.8 in March, according to economists.