World stocks rose to a whisker off all-time highs on Wednesday and the dollar rose for the 11th straight day following Federal Reserve Chair Janet Yellen's flagging of a possible interest rate rise next month.
Japanese Prime Minister Shinzo Abe said on Wednesday U.S. President Donald Trump shared his view at last week's summit that Japan's monetary policy was not currency manipulation but was intended to end deflation.
The dollar hit a two-week high against the yen on Monday as investors focused again on the U.S. reflation trade which dominated the aftermath of Donald Trump's election in November but has stalled this year.
World stocks and bond yields rose on Monday, lifted by a re-emergence of so-called "Trump trades" as investors bet that the U.S. president's tax reform plans will boost economic growth and corporate profits.
The dollar hit its highest level in 10 days against the yen ahead of a meeting of the U.S. and Japanese leaders on Friday, putting it on course for its best week against a basket of major currencies since mid-December.
The increasingly unpredictable French presidential election race unnerved European financial markets on Tuesday, tipping the euro towards its biggest fall this year and driving investors away from French government bonds.
Japan's former currency czar Eisuke Sakakibara said the dollar could fall below 100 yen by year-end on U.S. President Donald Trump's perceived support for a weak dollar, but cautioned that any yen-selling intervention by Tokyo might be counterproductive.