The United States of America dollar .DXY was up 0.4 percent against a basket of six major currencies at 89.61, after reaching a two-week peak of 90.034 the previous day.
The dollar traded as low as 108.92 yen JPY= before edging up to trade at 109.22 yen by 1220 GMT.
The greenback had reached a high of 109.720 yen earlier in the day as regional equities such as Japan’s Nikkei .N225 soared, taking their cue from a late rebound on Wall Street.
But it drifted lower as the Nikkei, which rose as much as 3.4 percent, gave back most of its gains on anxiety over more weakness in U.S. share markets as U.S. stock futures fell during Asian trade.
“Everybody in the world can see dollar/yen is going to break lower at some point again and that the yen is going to make a move (higher) like the euro did and head back towards fair value, 30 seconds after the Bank of Japan even hints about tapering,” said Societe Generale macro strategist Kit Juckes, in London.
The Swiss franc, a perceived safe haven along with the yen, was down half a percent against the dollar CHF=.
