The dollar slipped from near a two-month high against the yen on Wednesday as technical problems hampered some currency trading and on a media report that the Bank of Japan will probably discuss bumping up interest rates at next month's policy meeting. Telecommunications around Asia were severely disrupted after earthquakes off Taiwan damaged undersea cables, hindering financial transactions. "Probably there was a little bit of a swerve ball thrown in because of the system problems," said Luke Waddington, head of forex trade at Royal Bank of Scotland in Tokyo. The dollar had crept up to a fresh two-month high against the low-yielding yen on Tuesday after lacklustre Japanese consumption and spending data kept doubts simmering about whether the BOJ would raise rates in January. But the yen found favour after Japanese government bond yields surged after Jiji news agency reported late on Tuesday that the central bank will likely discuss raising rates to 0.5 percent at next month's meeting. Jiji, citing no sources, added that the decision could be postponed to February or later in the event of anything unexpected happening in financial markets. "Bond yields are rising in the afternoon and the yen is edging up a bit because of that," said Daisuke Uno, market strategist at Sumitomo Mitsui Banking Corp. The euro rose 0.5 percent to $1.3160, erasing the single currency's 0.3 percent fall on Tuesday when dealers in the United States returned from Christmas holidays. Financial markets in Europe will reopen later in the session.