The yen struggled across the board on Friday after posting gains this week, weighed by warnings overnight by the Japanese finance minister of possible intervention to weaken the currency.
Gains in global stock markets and oil prices also bolstered the market's appetite for risk, diminishing the appeal of the safe-haven yen.
The yen had surged as much as 2 percent against the dollar on Thursday. Japanese Finance Minister Taro Aso responded early Friday by warning that rapid currency moves were "undesirable," that the yen's moves were "one-sided" and that Japan would take steps as needed.
That is language that Tokyo has used in the past to flag intervention. The yen has rallied to 17-month highs against the dollar, and investors have thus far expected that Japanese policy makers will hold fire on a rate decision at least until after next week's G20 meetings in Washington.