The yen retreated in Asian trade following a report that the Bank of Japan is considering cutting borrowing costs further into negative territory when it meets next week.
With the merger of FamilyMart Co. and Uny Group Holdings Co. on Sept. 1, the integrated convenience store is now competing as one of the "big three" alongside Seven-Eleven Japan Co., Japan's largest chain, and Lawson, Inc.
Traders bought the yen and dumped the South Korean won Friday as financial markets were jolted by news that North Korea conducted another nuclear test, reigniting geopolitical tensions.
Japan's economy barely grew in the second quarter, revised data showed Thursday, further calling into question Prime Minister Shinzo Abe's big-spending easy-money policy drive.
The yen picked up on Monday as Japan's central bank chief left markets guessing about whether policymakers would launch fresh easing measures this month. Traders were keen to see if Haruhiko Kuroda -- speaking at a Tokyo business seminar -- would drop any hints about the BoJ's policy plans.
Japan's new passenger jet on Sunday aborted a test flight to the United States for the second time in two days because of an air conditioning defect, its maker said.
Japanese inflation continued to disappoint in July, according to data released on Friday, with consumer prices dropping for a fifth straight month in the latest blow to Tokyo's faltering war on deflation.
The dollar broadly weakened Tuesday as traders awaited a speech by Federal Reserve chief Janet Yellen, which they hope will offer fresh clues about U.S. monetary policy.
Japan's economy stalled in the April-June quarter, data showed Monday, missing market forecasts and rekindling worries about the government's faltering bid to stoke a recovery.
The yen weakened Monday as disappointing Japanese second-quarter GDP data boosted speculation that the country's central bank will have to unleash more stimulus to counter a downturn.