The dollar slipped against the yen today towards an eight-month low marked earlier this week as Japanese exporters sold the US currency to settle business before the quarter ends later in the day.
The dollar's slide was broad with the Australian dollar striking a 13-month peak against the greenback after strong retail sales data added to the case for a rise in interest rates as early as November.
Sterling rose against the dollar after an index for consumer confidence posted its biggest monthly jump in more than 14 years in September.
Dollar/yen was whipped around by flows related to the end of the quarter, as well as Japan's fiscal half-year today.
The pair rose in early Asian trade as Japanese importers bought dollars. But the greenback soon erased gains as such corporate demand faded quickly.
The dollar slipped 0.4 per cent from late US trade to 89.65 yen, erasing earlier gains to 90.42 yen on trading platform EBS and falling towards an eight-month trough near 88.20 yen hit on Monday. On the quarter, the dollar plunged nearly 7 per cent against the yen.
Japanese Finance Minister Hirohisa Fujii said on Tuesday the government may take action if currency moves were irregular, backtracking on earlier comments that suggested authorities were comfortable with a rising yen.
The euro inched up 0.2 per cent to $1.4620, having climbed over 4 per cent so far in July-September.
Against the yen, the euro was down 0.3 per cent at 131.05 yen - but well above a two-month low of 129.84 struck on Monday on EBS.
Crude oil rose above $67 a barrel in New York as the dollar retreated from gains and investors purchased futures on signs of a global economic rebound.
Oil climbed, reversing earlier declines, after the dollar slid against the euro today, prompting investors to buy commodities as an inflation hedge. Chinese manufacturing expanded for a sixth month in September and Japanese industrial output climbed for a sixth time in August.
An industry report yesterday showed U.S. crude stockpiles climbed for a third week.
Reuters