The yen fell for a third straight day against the dollar on Friday, on track for its worst weekly loss since mid-February as expectations of aggressive monetary easing from the Bank of Japan continued to curb the currency's appeal. The dollar, up about 2.3 percent versus the yen on the week, remained in favour after Japanese Prime Minister Yoshihiko Noda paved the way for a snap election on December 16. The lower house of parliament was dissolved on Friday.
The euro, meanwhile, continued its downward drift as concerns over Greece's debt struggle and Europe's stagnant economy weighed. The dollar rose as high as 81.38 yen. It last traded at 81.36, up 0.3 percent on the day, according to Reuters data, with traders citing a large options barrier at 81.50 yen and stop-loss orders placed above it. The US currency hit a 6-1/2-month high of 81.45 yen on Thursday, according to Reuters data. Against the dollar, the euro fell for the first time in three sessions, last trading down 0.6 percent at $1.2708 but holding above Tuesday's two-month low of $1.2660. The euro last traded down 0.4 percent at 103.28 yen, according to Reuters data.