The yen dropped on Wednesday after an influential Bank of Japan official played down the chances of a near-term rate hike, soothing investors' concerns that a further jump in the Japanese currency could again rock global markets.

The yen fell around 2.5% to a session low of 147.94 per dollar following the comments from BOJ Deputy Governor Shinichi Uchida. The dollar was last up 1.7% at 146.79 yen.

The U.S. dollar index , which measures the currency against six rivals, rose 0.15% to 103.13, inching further away from the seven-month low of 102.15 it touched on Monday.

The euro eased 0.1% to $1.0923, down from an eight-month high of $1.101 hit on Monday as the dollar dropped. Sterling was 0.1% higher at $1.2704.

Traders ramped up their bets on Federal Reserve rate cuts on Monday following an unexpected jump in the unemployment rate on Friday, at one point pricing in more than 125 basis points of reductions this year.

Source : Reuters