The yen hit a three-week low against the dollar and two-week low against the euro on Wednesday, buffeted by record high oil prices, weak Japanese economic data and falling Tokyo share prices.
The Swiss franc rose after Switzerland's leading indicator of business expectations hit an 11-month high in August and the safe-haven currency benefited as sky-high oil prices made investors more risk averse.
"With rising oil prices, the FX markets seem to be viewing the prospect of slower global growth going forward so you're seeing growth currencies such as the yen underperforming and more defensive currencies outperforming," said Derek Halpenny, currency economist at Bank of Tokyo Mitsubishi.
The dollar was slightly higher ahead of US second-quarter growth data and a Chicago manufacturing survey which could shed light on whether the Federal Reserve would keep raising interest rates beyond this year.
Preliminary growth data due at 1230 GMT is expected to show the US economy grew 3.5 percent in the period, against the advance estimate of 3.4 percent. The Chicago PMI index of manufacturing activity is due at 1400 GMT.
Oil prices rose towards new highs above $70 a barrel on supply concerns. This put downward pressure on currencies in oil-reliant Asia, which were already suffering from fears of an economic crisis in Indonesia after its currency plunged to a 4-year low against the dollar this week.
By 1230 GMT, the yen had fallen around 0.5 percent against the dollar to 111.78 yen, its lowest level since August 10. It also fell as low as 136.38 per euro.
The euro was slightly weaker against the dollar at $1.2190 but still firmly within recent ranges and showing little reaction to eurozone August inflation data and second-quarter economic growth data that largely matched market expectations.
The Swiss franc hit session highs of 1.2670 per dollar and 1.5471 per euro after the KOF leading indicator rose to 0.71 in August from a revised July figure of 0.64, brightening the outlook for the Swiss economy.
Sterling fell a quarter cent against the dollar to trade around $1.7841 and slipped against the euro after a weaker-than-expected reading for UK consumer confidence.
The yen, the most liquid of Asian currencies, was also hurt by data showing Japan's industrial output fell more steeply than expected in July, which pushed Tokyo stocks down.
"For the yen it's much to do with oil prices. High oil prices are an unambiguous negative for all Asian currencies but the yen's sensitivity is historically high," said David Mann, currency strategist at Standard Chartered.
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