LONDON (AFP) - The yen firmed against the dollar and euro as crude oil prices retreated further from record high points, easing worries about Japan's economic growth outlook.
The single European currency stood Thursday at 1.2323 dollars from 1.2330 overnight in New York.
The dollar eased to 110.78 yen from 110.84 on Wednesday.
The price of light sweet crude for November delivery fell 14 cents to 49.37 dollars a barrel in pre-opening electronic trading on the New York Mercantile Exchange Thursday, off record high points above 50 dollars reached at the start of the week.
The yen has struggled more than other major currencies in the wake of soaring oil prices. Since Japan imports all of its crude, the spike in prices has fuelled worries about the country's economic recovery.
Gains made by the Japanese currency were limited, however, ahead of Friday's release of the Bank of Japan's key Tankan quarterly business confidence survey, dealers said.
"It is difficult to take fresh positions ahead of the Tankan," said Kazuhiro Kaneko, dealer at Trust and Custody Services Bank.
The Tankan survey for the September quarter was expected to show that the improvement in confidence at major manufacturers is peaking out while the service sector is picking up, economists said.
News that Japanese industrial output rose 0.3 percent in August supported local stock prices but failed to spur yen buying, dealers said.
Elsewhere, the pound struggled after Nationwide, Britain's biggest provider of home loans, said British house price growth remained subdued in September, rising 0.2 percent from August.
"This latest housing market report adds to the weaker batch of data received this week which, taken together, have got the markets into thinking that a further (British interest) rate hike looks much less likely than it did," Deutsche Bank analysts said.
Bank of England policymakers have raised interest rates five times since November last year and the cost of borrowing currently stands at 4.75 percent.
The euro was changing hands at 1.2323 dollars against 1.2330 late on Wednesday in New York, 136.50 yen (136.64), 0.6854 pounds (0.6848) and 1.5533 Swiss francs (1.5537).
The dollar stood at 110.78 yen (110.84) and 1.2606 Swiss francs (1.2588).
The pound was at 1.7973 dollars (1.7995), 199.14 yen (199.52) and 2.2660 Swiss francs (2.2662).
On the London Bullion Market, the price of an ounce of gold stood at 412.55 dollars against 412.95 late on Wednesday.