The dollar tumbled to a three-month low against the yen on Monday after Group of Seven powers said China should let the yuan appreciate as a way of fixing global trade imbalances. Finance ministers of the world's biggest economies called for major exporting nations to allow their currencies to rise against the dollar to help resolve the imbalances, highlighted by the massive U.S. trade deficit and China's booming surplus. The G7's new rhetoric came just as investors soured on the U.S. currency as global imbalances took centre stage in the lead up to the Washington meetings and some central banks said they would shift reserves out of the dollar. But analysts said the fall-out on the dollar may be limited as Chinese officials have made clear they will reform the yuan at their own pace, while the G7 stopped short of laying out concrete action to correct the trade imbalances. "At the end of the day there is little the G7 is proposing to 'do' about the global FX issues it has identified," said Richard Yetsenga, currency strategist at HSBC in Hong Kong. "This argues against a singular focus on this issue as a market driver, even in the near term," he said. Instead the market's focus was swinging back to the outlook for short-term interest rates, especially with European Central Bank chief Jean-Claude Trichet and Federal Reserve Chairman Ben Bernanke both slated to speak this week. Trichet gives a talk at the Council on Foreign Relations in New York at 2200 GMT. The dollar has suffered from mounting expectations the Fed will soon end a nearly two-year campaign of raising rates while the ECB is poised to keep tightening through the year. The Fed is widely seen lifting overnight rates to 5 percent in May, what would be a 16th straight interest rate increase. But investors increasingly believe the central bank will then take a break to assess the impact of the tightening. The dollar fell about 1 percent against the Japanese currency to a low of 115.32 yen on electronic trading platform EBS -- the lowest since January -- before clawing back to 115.70 yen by 0320 GMT. Japanese investors and importers snapped up dollars around the lows, traders said. The euro slid to 142.90 yen , down about a yen from late New York trade on Friday and off an all-time high of 145.51 struck last week. The euro was little changed around $1.2350 after climbing as high as $1.2380, near a seven-month high of $1.2395 on EBS. The U.S. currency was also hurt after Osama bin Laden said in an audiotape attributed to him that the West was waging war against Islam.