Dollar gains over half a percent against the yen, trades within sight of recent three month highs around 123.49 , amid talk of a ratings downgrade for Japanese government debt.
- The yen started losing ground after the Jiji news agency quoted a senior official at U.S. credit ratings firm Standard & Poor's as saying the chance of a downgrade was growing.
- The euro also rose against the yen on the reports, trading around 108.50 .
- The dollar was stronger against the euro with dealers in cautious mood ahead of the October German Ifo business sentiment survey due out later on Wednesday, which was expected to show no change from September's depressed level of 85.00.