Yen lost some of its strength in the Asian session after news reports from several sources said that the Bank of Japan may increase monetary easing next month. On Tuesday the central bank did not take any action which pushed yen to a one month high against the dollar and euro. Meanwhile risk aversion also caused increased flows to the safe haven Japanese currency.
USDJPY fell to 80.60 before retracing to 80.93. EURJPY edged down further in Asian trading to a low of 105.43, the lowest since February 22 before bouncing to 105.94.
The Australian dollar bounced off a three month low against the dollar, as profit taking helped lift the aussie. AUDUSD fell to a low of 1.0224 before bouncing to 1.2920. The commodity price-sensitive aussie is under pressure by recent lower commodity prices.
EURUSD advanced slightly during the session to 1.3095 after opening at 1.3079. Euro is still looking bearish and is under pressure by renewed concerns over the euro zone debt crisis after Spanish 10-year bond yields reached a high of almost 6 percent yesterday, the most since December 12.
GBPUSD was slightly better bid during the Asian session, from 1.5860 to 1.5879. EURGBP was little changed, holding between 0.8240-47 and not far from its recent three-month low.