Yellen's speech cited persistent labor market slack but noted faster recovery in the sector could accelerate the timing of a Fed interest rate hike.» Read More
The dollar fell from 2 1/2-year peaks against the yen on Monday in subdued trading as investors locked in profits after the greenback's recent rally.
The euro rallied Friday on growing optimism the region's debt crisis has turned the corner, while the yen was headed for its 11th consecutive week of losses.
The yen tumbled 2 percent against the dollar to hit a 2 1/2-year low on Thursday after a Japanese official said the government has no problem with the dollar hitting 100 yen.
The yen was little changed against the dollar on Wednesday one day after a sharp rally, and traders appeared ready to resume selling the yen.
The yen pushed higher against the euro and dollar on Wednesday, extending gains from the previous day, when monetary easing from Bank of Japan fell short of some expectations for faster, more aggressive action.
The yen soared 1 percent against the dollar and euro on Tuesday after the Bank of Japan said its open-ended commitment to buy assets would kick in only next year.
U.S. Treasury debt prices were trading little changed as a U.S. Republican proposal for a limited rise in the debt ceiling curbed demand for safe-haven assets.
The yen briefly fell against the dollar on Tuesday after the Bank of Japan surprised markets by adopting an open-ended commitment to buy assets, but later regained ground as the new scheme for additional purchases only comes into effect next year.
The yen hit a 2-1/2 year low against the dollar on Friday as markets positioned for the Bank of Japan to take bold action to tackle deflation at a policy-setting meeting early next week.
Hamish Pepper, Forex Strategist, Asia Pacific at Barclays shares his outlook for Asian currencies, including the yen.
A recent warning from a Japanese minister about excessive yen weakness continued to underpin the currency.
The yen on Tuesday posted its best one-day gain against the euro in seven months and rose against the dollar after falling four straight days.
The euro rose against the dollar for a third straight session Monday, touching an 11-month high, as investors continued to trade off of diminished expectations of ECB monetary easing.
Singapore on Friday increased a tax on foreign buyers as part of new measures to cool its housing market which has seen continued strong demand in the face of a weak economy and previous efforts to curb prices.
The euro rose to its highest level since April 2012 against the dollar Friday with investors continuing to trade on the absence of any hints as to future euro zone interest rate cuts.
The euro catapulted to an 18-month high versus the yen and hit a one-week peak against the dollar Thursday after the European Central Bank gave no indication of cutting rates.
In the past few years, central banks around the world have pumped trillions of dollars into the financial system, partly motivated by the desire to keep their currencies weak in relation to others.
The yen plummeted against the U.S. dollar Wednesday, revisiting a trend that recently took the currency to a 2-1/2-year low on expectations of easier Bank of Japan policy.
The dollar and euro plunged against the yen as investors booked profits in the aftermath of swift and significant gains.
The euro gained for a second straight session against the dollar on Monday, benefiting from technical factors as well as expectations that the European Central Bank will refrain from cutting interest rates.