The Yen rose against the dollar and euro on Tuesday after the Federal Reserve cut its benchmark interest rate by a quarter of a percentage point, less than some had expected.

Traders speculated the the Fed's latest move to lower its overnight lending rate - the rate at which banks lend balances at the Federal Reserve to each other - would not be enough to ward off a recession in the U.S. economy.

The yen rose to 110.64 per dollar at 3:45 p.m. in New York from 111.71 late Monday. It advanced to 162.09 per euro from 164.33.

The Fed also lowered its discount rate, at which it lends directly to banks, by 25 basis points to 4.75.