The yen hovered near a 38-year low on Thursday, remaining near 160 to the dollar as markets watched for any sign of Japanese authorities stepping in to support the currency.
The dollar pared some of its gains from the previous session as U.S. Treasury yields fell slightly, but the dollar remained near an eight-week high against a basket of rival currencies.
The yen rose 0.3 percent to 160.33 per dollar in Asian trade, recovering some losses after falling to 160.88 on Wednesday, its lowest since 1986.
The Japanese currency has fallen about 2 percent this month and 12 percent so far this year against the dollar as a wide interest rate differential between the United States and Japan continues to weigh on the yen by keeping it attractive for speculative trading, where investors borrow a currency at a low interest rate and invest the proceeds in higher-yielding assets.
The latest slide in the yen has worried investors who are awaiting possible intervention from Tokyo after authorities spent 9.79 trillion yen ($60.94 billion) in late April and early May to push the yen up 5 percent from a 34-year low of 160.245.
The pound moved away from a more than one-month low hit in the previous session and rose 0.13 percent to $1.2638. The euro also rose 0.11 percent to $1.0693.
The dollar index fell 0.1 percent to 105.92 from a near two-month high of 106.13 hit in the previous session, boosted by a rise in U.S. Treasury yields.
The Australian dollar rose 0.23 percent to $0.6663, benefiting from a boost on Wednesday from a shock rise in inflation. The New Zealand dollar rose 0.07 percent to $0.6088.
