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FOREX-Dollar cuts gains vs yen on Japan finance minister comment

Reuters - UK Focus

NEW YORK, May 28 (Reuters) - The dollar fell to U.S. session lows versus the yen on Thursday after Japanese Finance Minister Taro Aso said the yen's recent drop had been "rough," igniting expectations the Bank of Japan may intervene to stem further decline in the currency.

In early afternoon trading, the dollar was up 0.07 percent at 123.760 yen after touching a U.S. session low of 123.620 on the EBS trading system.

The greenback earlier hit a 12-1/2-year peak against the yen due to bets the Federal Reserve would raise U.S. interest rates later this year and the BOJ might consider further stimulus. (Reporting by Richard Leong; Editing by James Dalgleish)