The Japanese yen gained ground on Tuesday on reports several Chinese banks, who had previously been told to raise their reserve requirement ratios, would have to do so on Tuesday.
That fueled a rise in the yen and led the dollar to fall to a low of 89.82 yen. Euro-yen was also down on the news, falling to a low of 126.84 yen.
This was the latest step by Chinese authorities to curb lending and stave off inflation.
The U.S. dollar gained ground against most Asian currencies, sending the dollar index slightly higher.
Also in focus today, the Bank of Japan left interest rates unchanged at 0.1% as widely expected. The central bank added that it would maintain easy monetary policies, highlighting the importance for the economy to emerge from deflation.
News that China's tightening measures would take effect today weighed on oil prices, with NYMEX crude dropping below $75 a barrel.
Gold was also under pressure, sliding below $1,100 an ounce.
