The yen and Swiss franc weakened against most of their major counterparts amid speculation policy makers in Japan and Switzerland will take further action to stem gains in their currencies.
The yen dropped the most in a week against the euro after Japanese Finance Minister Yoshihiko Noda indicated he’s ready to intervene in markets again.
The franc fell for a fourth day versus the dollar after the SonntagsZeitung newspaper said the Swiss government and the central bank are in “intense” talks over setting a target for their currency.
The franc soared 11% in the past three months and the yen added 3.3%.
Japan’s economy shrank at a 1.3% annual pace in the three months through June, the third quarter of contraction, government data showed today. The median forecast of economists was for a 2.5% drop.

EUR/USD initially rose from $1.4250 to highs on $1.4320. Rate failed to set above the figure and retreated to $1.4280. Later rate back to earlier highs.
GBP/USD held within the range, limited by $1.6270/$1.6310 before it refreshed lows around $1.6250. Rate currently holds around $1.6300.
USD/JPY fell from Y77.10 to Y76.77 before it recovered to Y77.00.

On Monday, attention will be on US Jun Total Net TIC Flows come at 13:00 GMT. According to analysts' outlook Net Long-Term TIC Flows rose to $30.4B after $23.6B in May.