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Analysts noted that the yen's safe-haven status was already going to be put to the test later this week with the release of first-quarter GDP data Thursday.

"It is worth remembering that the last bout of prolonged yen weakness was partly triggered by a grim reading on fourth quarter-of-2008 GDP," said Daragh Maher, deputy head of global foreign-exchange strategy at Calyon Credit Agricole in London.

As the yen turned down, the euro turned up, but the single currency could make little headway against the dollar on the latest worries that officials within the ECB can't agree on policy.

ECB Council member Axel Weber said over the weekend that the central bank had done enough for the economy of the euro zone and it shouldn't consider further measures until things get a lot worse.

This came just as the market was digesting a series of poor GDP numbers from eastern European economies that reminded investors just how much euro-zone banks remain exposed to the region.

"As the CEE region has become a global underperformer it will act as a negative factor for the euro," said the currency strategy team at BNP Paribas SA.

By 0930 GMT, the dollar had risen to Y95.75 from Y95.10 late Friday in New York, according to EBS. The euro was down at $1.3461 from $1.3488 but up at Y128.94 from Y128.28.

The dollar was also up at CHF1.1243 from CHF1.1224, while the pound rose to $1.5236 from $1.5175, helped by a report from Rightmove that house prices were up 2.4% in May, the largest rise in 14 months.

Central and eastern European currencies are mixed. The euro is down at HUF287.67 from HUF288.10 and at CZK26.940 from CZK26.974. But the single currency is up at PLN4.4865 from PLN4.4837.