The yen had the biggest move of any currency, dropping from the highest in almost two weeks versus the dollar as a government report showed Japan's May trade surplus had the biggest decline in more than three years. Japan's currency also weakened against the euro as exports had the smallest gain since November 2003 and the rising cost of crude oil pushed up imports. Overseas sales, which make up about 10 percent of the economy, had the first quarterly decline in more than three years last quarter, a report by the Cabinet Office on June 13 showed. Net exports subtracted 0.1 percentage point from growth. ``Slowing export growth reduces optimism over the export-led economic recovery and led to some yen selling,'' said Satoru Ogasawara, a currency strategist in Tokyo at Credit Suisse First Boston. Japan's trade surplus shrank 68 percent from a year earlier to 297 billion yen ($2.7 billion), the Ministry of Finance said in Tokyo. It was expected to narrow to 499.1 billion yen, based on the median forecast of 31 economists surveyed by Bloomberg News. Exports rose 1.4 percent, less than the 6.8 percent median forecast. ``Japan's external surplus is narrowing and that's a serious concern for the economy,'' said Callum Henderson, head of global currency strategy in Singapore at Standard Chartered Plc. ``That's going be a source of yen weakness in the absence of a move by China.'' The yen may decline to 110 in the next month, he said.