The Japanese yen appreciated yesterday to 89.59 against the U.S dollar today from 90.27, and appreciated to 124.83 per EUR, the strongest level since April 28. A stronger Yen reduces the value of overseas sales for Japanese companies when converted into their native currency.

The Yen gains were trimmed however as dollar buying emerged related to Japanese investment trusts, known as toushin. A fall on Wall Street also undermined investors' willingness to hold risk positions, with many share markets in Asia also down more than 1 percent.