The yen fell to its lowest level against the euro in around eight months and retested five-month lows against the dollar in early European trade, after another round dismal economic data from Japan.
"The yen is the weakest link of the major currencies at the moment, and is suffering from a confluence of factors: worsening economic fundamentals, pressure on the Bank of Japan to ease and worries over Japan's debt position," said Neil MacKinnon, senior currency strategist at Merrill Lynch.