The yen hit its highest level in 14 years on the dollar on Friday, with investors unwinding risk trades as stocks fell on concerns about debt problems in Dubai.

Oil prices rebounded toward $77 a barrel on Monday, aided by a weaker U.S. dollar, but investors continued to eye developments in debt-laden Dubai with caution over their impact on the pace of the global economic recovery.

The dollar edged down against other major currencies on Monday, pausing from sharp gains made last week after the United Arab Emirates offered emergency assistance to banks in Dubai, soothing the market fears about a looming debt default.

The dollar's slide lower against the yen shows no sign of letting up and it could push toward 80 yen, which the pair would not have seen since 1995, Royce Tostrams, Technical Analyst at Tostrams Groep, told CNBC.

Global stocks sold off sharply on Friday, with Asia's Kospi and Hang Seng indexes down over 4 percent, as concerns about contagion from Dubai's debt crisis curb investors' appetite for riskier assets.

Oil prices dropped more than 2 percent on Friday as fears of possible defaults in Dubai convulsed financial markets and boosted safe-haven demand for the U.S. dollar.

The dollar rebounded from a 14-year low against the yen on Friday, as fears of a possible Dubai debt default boosted safe-haven demand for the U.S. and Japanese currencies.

The yen hit its highest level in 14 years on the dollar on Friday, with investors unwinding risk trades as stocks fell on concerns about debt problems in Dubai.

The dollar fell to its lowest level in 14 years against the yen on Friday and the yen crosses also fell, with one trader saying investors were shunning risk trades on concern about debt problems in Dubai.The dollar fell as far as 85.84 yen on trading platform EBS, its lowest since 1995.

Global stocks were lower on Thursday, with China's Shanghai Composite closing 3.6 percent lower, while gold hit another new record to $1,194.90 an ounce, as Debt problems in Dubai curbed investors' risk appetite.

Oil fell towards $77 on Thursday in line with falls across financial markets and as weak demand for fuel offset potential support from a weak dollar.

The dollar gained sharply in holiday-thinned trade on Thursday as renewed risk aversion prompted investors to shed riskier assets.

The U.S. Mint said Wednesday it will suspend sales of the popular American Eagle 1-ounce bullion coins as rising demand depleted its inventory.

Global stocks rose on Wednesday, with gold hitting another new high above $1,178 an ounce, after the Federal Reserve raised U.S. growth forecasts for 2010. Experts told CNBC liquidity will continue to drive stocks up, but that investors should see dips as short-term buying opportunities.

Crude oil prices rose more than 2 percent Wednesday, supported by lower-than-expected builds in U.S. oil inventories last week, a weak U.S. dollar and gains on Wall Street.