The yen is performing strongly against the world's 16 most active currencies, it has been reported.

According to Bloomberg, the Japanese currency stood at 230.60 to the pound in early morning London trading, while also strengthening against the euro and the dollar since yesterday.

The dollar weakened after the August minutes of the Bank of Japan showed "a bias for gradually raising interest rates in line with economic growth", Forbes reports.

Christy Tan, Bank of America currency strategist, told Forbes some investors use this as "an excuse" to buy the Japanese currency.

Yen-buying was also triggered by "renewed risk reduction", Akihiro Tanaka of Resona Bank told Bloomberg, as the Independent reported more cash is needed by the UK Financial Services Compensation Scheme following the Northern Rock crisis.

It is expected that the yen will continue to strengthen against the dollar depending on US data due out today.

Bank of Tokyo-Mitsubishi UFJ senior trader Kazuyuki Takami told the Associated Press the dollar "could drop to 114 yen within a day".