The euro fetched $1.3247 and 101.87 yen in Tokyo morning trade on Wednesday against $1.3261 and 101.82 yen in New York late Tuesday.

The single currency got a boost overnight from reports that a final debt rescheduling deal between Greece and its creditors had been drafted and could be signed soon.

The dollar edged up to 76.92 yen from 76.78 yen in New York after Japan announced worse-than-expected figures in its current account, the broadest measure of trade with the rest of the world.

But the dollar's rise against the yen was likely limited, analysts said.

"The figures could spur some yen-selling, although its impact on the market will likely be limited," said Mizuho Securities forex strategist Kengo Suzuki.

The finance ministry said Wednesday that Japan's current account surplus tumbled 43.9 percent to a 15-year low in 2011 as the nation logged a trade deficit due to lower exports and higher energy costs.

In December alone, the surplus fell by 74.7 percent to 303.5 billion yen, decreasing year-on-year for the 10th straight month since the March earthquake and tsunami disasters.

A fall in the value of the yen will likely mean the Japanese government's threats to step into currency markets to tame the unit's recent surge will recede.

"With a better global economic outlook, the risk of intervention and a worsening external balance, the Japanese yen may well weaken in the absence of poor news on Europe," National Australia Bank said in a note.

"The market is increasingly concerned about Japan’s ability to self-fund its fiscal deficit and pointing to this deterioration as a trigger for Japanese yen weakness," it said.