In Forex trading online, the dollar was headed for its worst week (week of May 20th) against the yen in nearly two years.
This extends the prior session's selloff, as volatility in Japan's stock market spurred investors to book profits on their bets against the Japanese currency, according to the Reuters report.
Aggressive monetary easing by the Bank of Japan has driven the U.S. currency up 16 percentage points, so far this year, to a 4-1/2-year high, with analysts expecting further gains. The euro has gained 14 percent this year.
But the yen price rebounded in Forex trading online after Federal Reserve Chairman Ben Bernanke on Wednesday sparked speculation the U.S. central bank may be close to reducing its bond-buying; which led to a selloff in global equities and a rush towards safe-haven currencies.
Some analysts believed the yen's recent selloff may have gone too far, two fast, although any rebound would likely be temporary on expectations of further easing in Japan. Hopes the Fed may be winding down its stimulus later this year would add to the dollar's momentum.
According to the report it is believed that the dollar/yen in Forex trading online has probably overshot its fair value.
The dollar fell 1.1 percent to 100.90 yen, after hitting a session low of 100.68, according to Reuters data, a two-week low.
On the week, it's headed for a loss of 2.24 percent, the worst weekly performance since July, 2011.
Japan's Nikkei stock average, having swung from gains of 3.6 percent to losses of 3.5 percent, ended Friday's session 0.9 percent higher. On Thursday, it fell as much as 7.3 percent.
The euro fell 1.1 percent to 130.51 yen, having hit a session low of 130.10 yen in Forex trading online.
Against the dollar, the euro had changed little, at $1.2933, after some earlier fluctuation.
Earlier, the euro climbed after the monthly German Ifo survey showed business morale improved far more than expected in May, suggesting Europe's largest economy is picking up.
But the dollar rebounded after better-than-expected U.S. durable goods data for April eased investor concerns about the U.S. economy. .
On the week, the euro rose about 0.7 percent, its first weekly rise in three weeks.
The dollar fell 1 percent against the Swiss franc, another safe haven which has recently tracked the yen lower.
The fluctuation in the market can represent a good opportunity to make a profit with Forex trading online.