Yen after swinging higher as investors trimmed bearish positions as an officer of the Group of Seven said there was concern about excessive movements in the Japanese currency.
In a volatile session, the yen initially fell after Japan's Finance Minister Taro Aso said the G7 statement acknowledged that Japan reflationary policy is not intended to influence the foreign exchange market.
But a G7 official later said the statement was intended to signal concerns about excessive step in the yen, prompting a reversal in the currency.
A Canadian officer then chimed in by saying the statement was intended to calm the rhetoric on the currency, it may indicate that some members of the G7 are Japan has been too vocal about the need to move gently yen.
Amid the confusion, the dollar slipped to around 93.27 yen from 33-month highs near 94.41, while the euro fell more than one yen to 125.00 so far. They last at 93.45 and 125.80.
In an effort to calm excessive movements in the yen, G7 in fact lead to excessive movements in the yen ..
To be sure, there will be volatility in the yen up to the G20 meeting of February 15 to 16 at reduction has drawn criticism from some other countries.
Pressure on the Bank of Japan to overcome deflation gave investors to sell the yen, which has slumped almost 20 percent on the greenback since November.
Investors are also likely to be cautious ahead of the BOJ meeting due on Thursday, though many expect the bank to delay any fresh easing measures until a new governor was appointed.
Other major currencies mostly down. The euro drifted higher against the dollar, edging to $ 1.3456 as it continues to attract more than two-week low around $ 1.3325.
Aussie dollar reappeared above $ 1.0300, though it seems the trend lower as the Reserve Bank of Australia ignored for more interest rate cuts last week.
In the euro zone, industrial production figures due, while U.S. retail sales will probably be the main focus for many investors.
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