The dollar rebounded against the yen after an historic invention aimed at halting the Japanese currency’s dramatic rise.
However, the dollar was hammered versus the euro and sterling amid expectations that European policy makers are preparing to hike interest rates in April.
The Group of Seven nations including the U.S. intervened in the currency markets last night, selling off the yen in a rare coordinated intervention.
The yen rose to a record high against the dollar on Wednesday, at a time when Japanese exporters can little afford the added competitive pressures brought on by a stronger yen.
Last Friday’s earthquake and subsequent nuclear crisis compelled Japanese traders to repatriate funds by buying the yen with foreign reserves.
The dollar jumped by to Y82 versus the yen on Friday, up from its all-time low of Y76.30.
Meanwhile, the buck slipped to a 4-month low of $1.4168 versus the euro, and a 2-week low of $1.655 against the sterling.
In economic news from Europe, the euro zone posted its largest external trade deficit on record in January as imports rose and exports dropped.
Non-seasonally adjusted figures show the trade deficit widened to €14.8 billion ($20.75 billion) from €500 million in December.
Meanwhile, German producer prices rose 0.7 percent in February compared to the month before and were higher by 6.4 percent on-year, Destatis said today.