The yen eased slightly on Wednesday after central bank remarks offset data that showed better than expected machinery orders.
USD/JPY changed hands at 124.37, up 0.01%, while AUD/USD traded at 0.7681, down 0.12%. EUR/USD rose 0.11% to 1.1292.
Bank of Japan Governor Haruhiko Kuroda said Wednesday aggressive easing will continue as financial markets and asset prices are not overheated.
"There is no asset bubble in Japan at this point," he told the Lower House of Parliament's Financial Affairs Committee.
Kuroda declined comment on daily fluctuations in the currency market but repeated foreign exchange rates "must reflect economic fundamentals."
"A rate hike by the U.S. Federal Reserve Board may not necessarily cause the dollar to appreciate and the yen to depreciate," he said.
EUR/USD dropped 0.46% to 1.1240 on Tuesday as investors also remained cautious after German Chancellor Angela Merkel warned Monday that "there isn’t much time left" to reach an agreement on a cash-for-reforms deal needed to unlock more financial aid for Greece.
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