The U.S. dollar hit a fresh 17-month trough against the yen on Wednesday on doubts that the Bank of Japan would intervene to halt the yen's appreciation, while the euro inched lower against the dollar ahead of Federal Reserve meeting minutes.
The dollar fell below 110 yen for a second straight day and hit its lowest level since late October 2014, after Japanese Prime Minister Shinzo Abe told the Wall Street Journal that countries should avoid seeking to weaken their currencies with "arbitrary intervention."
The dollar last traded down 0.52 percent at the 109.74 yen level. The dollar has fallen more than 8 percent against the yen so far this year, partly on a more dovish Fed.
"The bar to (BOJ) intervention is pretty high," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York.