The yen recovered from earlier record lows against the euro on Wednesday, as investors started to unwind positions that were built on the Japanese unit's low-yielding status. The Australian dollar suffered the most damage against the yen, falling as much as 2 percent after Australian inflation data raised the possibility that its central bank may have ended monetary tightening. Sterling, meanwhile, fell further from the previous session's 14-year peaks against the yen and dollar after minutes of the Bank of England's latest meeting showed a sharp 5-4 split in favour of this month's surprise UK rate rise to 5.25 percent, compared with expectations of a 7-2 vote. This followed downbeat comments late on Tuesday by BoE Governor Mervyn King. "The remarks by King yesterday were considered slightly dovish. That and the Australian CPI triggered some profit-taking in yen short positions," said Armin Mekelburg, currency strategist at Unicredit (HVB) in Munich. "It's not clear whether markets will resume the path they were on or not, but I think the yen will remain weak."