The euro extended losses versus the traditional safe-haven yen on Tuesday, hitting a session low and heightening expectations of currency intervention by the Bank of Japan.

The euro dropped to a trough of 105.25 and last traded at 105.28, down 0.7 percent on the day, according to Reuters data.

Investors are on high alert for intervention from Japanese officials to stem the currency's rise.

Japanese Finance Minister Jun Azumi again warned markets against pushing up the yen too far, saying he was ready to take firm steps if its gains became excessive.

The dollar has earlier hit a record low of 75.73 , just below the previous low of 75.78 yen reached late last week. It last traded at 75.84, down 0.3 percent on the day.