The yen traded near its weakest level in more than a week against the dollar as gains in stocks spurred demand for higher-yielding assets and after Japan's Social Democratic Party left a three-way coalition government.
The Japanese currency, which rose against most of the major currencies this month as Europe's credit crisis drove investors to safe haven assets, declined earlier yesterday after a poll showed more than half the nation's voters want Prime Minister Yukio Hatoyama to resign.
Overall, the JPY dropped about 70 pips vs. the Dollar and the USD/JPY pair has peaked at the 91.48 level. The Yen also saw a downtrend against the Euro and the Pound as well. Yet by the end of the day, the Yen managed to correct some of its losses.