The U.S. dollar fell to a 15-month low against the yen on Thursday, on track for its worst week against the Japanese currency since 2008, as fears of a global economic slowdown and conerns about stress in the banking system, increased demand for safe-havens.
The yen surged against both the U.S. dollar and euro on speculation about Bank of Japan intervention though, but the BOJ had no comment.
The U.S. dollar was down .84 percent against the yen midday in New York, falling to 112.392 yen.
The euro rose against the dollar, touching a fresh 3-1/2-month high at $1.1368. The euro last traded at $1.1327, up .41 percent on the day.
A slump in major stock markets and a jump in bond prices this week has forced traders out of risky positions, leading to the unwinding of the carry trade and repayment of cheap yen funds.