The dollar rose to a seven-month high against the yen on Tuesday, with investors on the look-out for possible intervention by Japan to boost the ailing currency.
Meanwhile, the euro picked up against the dollar as investors listened closely to policymakers' speeches at the European Central Bank's annual forum at Sintra in Portugal.
Many investors and analysts believe intervention is a possibility after the government stepped up its comments on the situation in recent weeks. The dollar index was 0.15% lower at 102.58, weighed down by the euro, which is its biggest component.
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