Dollar has risen 4.5% on the Japanese currency so far this month, which would be its second-biggest monthly percentage gain since 2016 behind March's 5.8%
The US rate futures market has priced in 96% chance of a 50 basis-point hike at next month's Fed policy meeting, and about 215 basis points in cumulative rate increases
Yen fell to a two-decade low of 126.795 in early Asian trading, before both Bank of Japan Governor Haruhiko Kuroda and Fin Min Shunichi Suzuki voiced concerns and caused it to bounce as far as 126.25
The euro slipped 0.14% to $1.0812, heading back toward the overnight low of $1.0785, a level unseen since April 2020.
The yen led losers against the dollar with the Japanese unit weakening 0.8% to cross the 126 yen to the dollar level for the first time since May 2002.
The U.S. currency also garnered support due to its status as a pre-eminent safe haven, with peace talks between Russia and Ukraine stumbling, though they are set to resume later on Friday.
The European single currency was at $1.1175 holding its highest in a month, having gained 1.7% so far this week.
The Japanese currency fell as much as 2.4% to 125.10 to the dollar overnight, its lowest since August 2015, before recovering to 124.24 in volatile morning trade in Tokyo.
The euro gained 1.27% to 135.895 yen, a four-year high.
NEW YORK (Reuters) -U.S. Treasury yields paused their ascent on Monday as oil prices fell on fears of weaker Chinese demand, while the yen at one point suffered its biggest daily fall since 2020 after Japan's central bank vowed to defend its low-rate policy.
Treasury yields rose further on Monday, with 10-year yields above 2.5% at a three-year high, boosting the dollar's index to a two-week high
Asian shares faltered and oil prices slid on Monday as a coronavirus lockdown in Shanghai hit economic activity, while the yen extended its stomach-churning descent
The euro was edging higher on Friday, but concerns about a potential slowdown of the economy kept it in a tight range
After touching a six-year low of 122.44 per dollar in the morning, by the Tokyo afternoon the yen had snapped a five-day losing streak and was up as far at 1% to 121.18
Equity markets were volatile, struggling to make gains in the Asian session, after more hawkish comments from the U.S. Federal Reserve made investors more cautious
The dollar index, which measures the greenback against six peers, dipped 0.1% to 98.222
NEW YORK (Reuters) - The U.S. dollar index bounced back on Friday from recent declines following comments from Federal Reserve officials on interest rates that supported the currency, while the dollar was at a fresh six-year high against the yen and the euro eased.
The dollar traded near a five-year high against the yen on Wednesday as investors awaited a Federal Reserve policy decision, with the Ukraine war and China's surging Covid-19 cases as the backdrop
Analysts attributed the revival of risk appetite to the fact that Russian and Ukrainian negotiators hinted at progress in peace talks
After uncertainty about the war in Ukraine prompted a market sell-off on Friday, stock markets rebounded on Monday and commodity prices edged back down