The euro briefly hit a record high against the yen today on yield differentials, while the dollar held steady ahead of US inflation data.
The euro rose to 148.61 yen, its highest since the single currency was launched in 1999, before retreating to 148.35 at mid-morning.
The euro was steady at $1.2727. The dollar was down 0.1 per cent at 116.55 yen and was off an earlier two-week high against a basket of major currencies.
"Euro/yen is hitting record highs all the time. As a funding vehicle the yen remains the carry trade of choice," said Adam Myers, currency strategist at UBS.