The yen held a two-day decline against the dollar as a rally in U.S. stocks damped demand for haven assets.

Japan’s currency has fallen more than 3 percent since reaching the strongest in seven months on Monday as Bank of Japan Governor Haruhiko Kuroda said that monetary easing has corrected the yen’s excessive appreciation. The dollar dropped against the majority of its major peers after Federal Reserve Bank of New York President William Dudley said the case for raising U.S. interest rates in September is less compelling amid recent market turmoil.

The yen slipped 0.1 percent to 120.01 per dollar at 9:05 a.m. in Tokyo, after reaching 116.18 on Monday, the strongest level since Jan. 16. Against the euro, Japan’s currency slid 0.3 percent to 136.05.

The dollar fell 0.2 percent to $1.1338 against the single currency.

Source : Bloomberg