LONDON—The yen slipped on Tuesday after its biggest daily rise since mid-July the day before as comments from Japan's top central banker on a possible end to its negative interest rate policy reverberated throughout markets.
The dollar, meanwhile, regained lost ground after clocking its biggest daily fall since July 13, while the pound slipped after mixed labor market data.
Bank of Japan (BOJ) Governor Kazuo Ueda told a newspaper interview over the weekend the bank could get enough data by year-end to determine whether it can end negative rates, remarks that on Monday saw the yen clock its largest daily gain against the dollar since July 12.
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The Japanese currency was last 0.1 percent lower at 146.71 per dollar, after scaling a one-week top of 145.91 in the previous session.
"Ueda's comments were a little more balanced than you would have thought from the market reaction," said Adam Cole, chief currency strategist at RBC Capital Markets.
"Japan is still a long way from meeting the criterion of sustainable 2 percent