The yen stayed below 110 to the US dollar and held on to its gains against its major rivals on Tuesday, supported up by investors' risk aversion and receding expectations that Japan will weaken the currency after a fresh warning by the United States last week against intervention.
Commodity-linked currencies such as the Aussie and Canadian dollars were under pressure, weighed by continued weakness in commodities such as crude oil.
EUR/JPY was flat at 122.55 after dropping 0.8 percent overnight, as EUR/USD pushed below 1.1200 to 1.1187 at the time of writing. USD/JPY bounced slightly from its lows and trades at 109.50 from 109.12 hit on Monday after it fell almost 1 percent.
The dollar was up to a three-week high of 110.590 late last week as prospects of the Federal Reserve hiking interest rates as early as June were revived.
Gold slipped half a percent to trade near a 3-1/2 week low hit in the previous session, also pressured by expectations that the US Federal Reserve will raise interest rates sooner rather than later.
Gold is sensitive to interest rates, gains in which raise the opportunity cost of holding non-yielding bullion. Spot gold fell more than 0.5 percent to $1,242.44 per ounce by the time of writing.
