The yen dived for a third successive day yesterday to hit a fresh seven-year low against the US dollar as representatives from the Group of Seven leading industrialised nations gathered for a hastily arranged meeting in Paris.
In early trade, increasing confidence that yesterday's private meeting of G7 deputies would not herald a new policy of intervention fuelled the yen's decline.
Sentiment was also driven by comments from US Deputy Treasury Secretary Lawrence Summers that there were unlikely to be any policy announcements.
'These are informal meetings of deputies - out of which we hope to have good discussions on a range of issues - but not meetings out of which we will make policy announcements,' he said.
Pessimism continued over the health of the Japanese economy, and renewed worries over the state of its ailing banking sector saw the yen drop to 141.11 yen, down from its close in New York on Monday of 140.65 yen.
Japan Finance Minister Hikaru Matsunaga insisted currencies would be discussed at the meeting.
'We have strong worries over an excessive yen weakness. We will take decisive measures as needed in co-operation with G7 nations,' he said.
