The yen slid to a record low against the euro and multi-year troughs versus other high yielding currencies on Tuesday as investors moved away from the Japanese currency to chase better returns.
The yen dropped to a fresh 13-year low versus the Canadian dollar, an 8-1/2 year low against the Australian dollar and a 7-year low versus sterling. It stayed near an 8-1/2 year low against the New Zealand dollar and was edging towards a fresh 32-month nadir versus the US dollar.
"Yen weakness has been reinforced by the view that the Bank of Japan are in no hurry and won't be badgered by the Ministry of Finance to raise rates," said Neil Mellor, currency strategist at Bank of New York.
Japanese Finance Minister Sadakazu Tanigaki said on Tuesday that recent moves in foreign exchange rates reflect economic fundamentals and that Group of Seven chiefs probably had no qualms about them.
The G7 finance ministers and central bank chiefs who met at the weekend in London made no comment on the yen. By 1300 GMT, the euro had gained 0.20 percent against the yen at 142.65 yen, having earlier hit a record high against the single currency at 142.82.
REVERSAL DUE? The dollar was up 0.20 percent versus the yen at 121.05 yen, closing in on Monday's 32-month peak at 121.39.
But some analysts said the trend could be set to turn tail, with a major reversal on the cards soon.
Interest rates in Canada and New Zealand, already at a large premium over Japan's virtually zero rate, are set to rise further this week, putting extra short-term pressure on the yen. The Bank of Canada is widely expected to raise interest rates to 3.25 percent from 3 percent at 1400 GMT, which led the currency to jump earlier to a 14-year peak against the greenback.
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