The yen extended losses against the dollar and euro on Tuesday, pressured by a growing view that a potential Bank of Japan interest rate rise was unlikely to curb the yen's appeal as a funding currency. The dollar moved off a six-week low hit against the euro earlier on Tuesday, with investors looking to a speech from a Federal Reserve official ahead of this week's key U.S. inflation figures. Investors are divided on whether the BOJ will lift borrowing costs to a decade-high of 0.5 percent on Wednesday. But even with a rate hike, the offered yield would still be the lowest in industrialised countries. "It looks like the BOJ will raise rates tomorrow but that is very finely balanced," Barclay Capital currency strategist Adarsh Sinha said, but added that a rise would not affect the relative attractiveness of foreign assets for Japanese investors. Others were less convinced that a rate would happen at all on Wednesday. "It's a close call, but when you look at the data there's nothing really convincing enough to justify a rate move," Mellon Bank head of currency research Ian Gunner said. "Even if they do raise rates tomorrow...with interest rates at half a percent and limited expectations for the rest of the year, there's just not a foundation to support a major reassessment of interest rate prospects," he added.