The dollar was strong against the yen earlier today, but was performing weakly in comparison to the euro, it has been reported.

Positive consumer expectations this month, coupled with a reduction in the current account deficit, led to the strengthening of the dollar over the past few days.

On Friday, the euro went up from $1.2615 to $1.2639 while the dollar was up from 114.86 yen to 114.13.

Similarly, the euro saw a rise to 145.51 - up from 144.90 on the yen, while also strengthening against the dollar.

Andy Busch of Harris Nesbitt in Chicago commented that the situation reflected the possibility that the market is going back to the feeling that the Federal Reserve will continue to bring up rates, while the European Central Bank will do likewise, but that the Bank of Japan will not.

Marc Chandler, global head of foreign exchange at Brown Brothers Harriman in New York, told the Dow Jones Newswires: "Expectations on the timing of the first rate hike from the Bank of Japan are in the process of being reassessed.

"This keeps the yen on the defensive."