The yen retreated Friday as Japanese officials repeated warnings they could step into currency markets to tame the soaring unit, which threatens profits at the country's exporters.
Japan's exports tumbled and the country logged a surprise trade deficit in August, data showed Wednesday, reviving concerns about the economy just before the Bank of Japan wraps up a closely watched meeting.
The yen extended its gains in Asian trading Tuesday as the Japanese and U.S. central banks kick off their latest policy meetings.
The dollar extended losses on Friday in Asia as investors bet against a September Federal Reserve interest rate hike following another weak batch of U.S. data.
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.