The yen rose against the euro and dollar on Friday after yet another downbeat session for oil prices and stock markets worldwide.
The dollar rose against most currencies, bolstered by an increase in risk appetite amid a continued recovery in oil prices.
The U.S. dollar fell below 114 yen after the Federal Reserve released the minutes from its January meeting.
The dollar rose against most major currencies on Tuesday as an agreement between the world's top oil producers increased investors' appetite for risk.
Dr. Derek Scissors of AEI and China Beige Book International talks about the state of China's economy and how its financial system affects global currencies and markets.
China should let its currency appreciate to support the country's transition to a consumer-driven economy, analysts tell CNBC.
Evan Medeiros, Eurasia Group, weighs in on the Chinese government allowing the yuan to strengthen.
Boris Schlossberg, Managing Director of FX Strategy at BK Asset Management, weighs in on China's central bank letting the yuan strengthen more than it has in a decade.
The euro and yen weakened Monday after a warning on volatile currency markets and huge gains from China's yuan helped settle financial nerves.
Stewart Paterson, portfolio manager at Tiburon Partners, says the yuan currency could be devalued by another 35 percent.
The dollar index rose on Friday after positive consumer spending data suggested the Fed may raise interest rates this year.
But as central bank's appear to be running out of options, their moves to weaken their currencies have become increasingly unsuccessful.
Hedge fund manager Kyle Bass' call for an imminent China banking crisis is already getting push-back, with Deutsche Bank calling it unlikely and exaggerated.
The dollar fell to a 15-month low against the yen on Thursday, on track for its worst week against the yen since 2008.
China's banks face a credit crisis with potential losses 400 percent larger than U.S. banks' losses during the subprime crisis, Kyle Bass said.
The dollar fell to a 15-month low against the yen on Wednesday as investors packed into the safe-haven Japanese yen.
The dollar tumbled to a four-month low on Tuesday as growing fears of a global slowdown pushed investors to safe-haven currencies.
The yen surged by half a percent against the dollar as worry over Europe's banks drove capital to the safety currecny.
China's foreign reserves fell for a third straight month in January, as the central bank dumped dollars to defend the yuan and prevent an increase in capital outflows.
The dollar rebounded on Friday after data showed a pickup in U.S. wages, suggesting rates hikes are more likely to happen in 2016.