The yen rose to a five-year high against the dollar today as investors bet next month's meeting of Group of Seven nations would put more pressure on Asian countries to let their currencies rise.
The US currency held some five cents above December's record low against the euro as dealers awaited data on US capital flows and inflation later this week.
Worried that market pressure to cut the US current account deficit is translating mainly into a stronger euro, top European central bank officials last week said they would call for Asia - particularly China - to shoulder more of the burden at February's G7 meeting.
"The market is looking for a stronger statement from the G7, so Asian currencies are outperforming," said Mr Adam Myers, foreign exchange strategist at Societe Generale.
"People are taking positions ahead of the meeting." The dollar fell to 101.70 yen in early European trade, its lowest level since January 2000 and only half a yen away above levels not seen since late 1995.
The dollar was little changed against the euro, at $1.3107 after its New Year rebound from record lows lost steam last week.