Tokyo - Traders piled into the yen on Wednesday as France's top central banker warned of "chaos" if Greece and its creditors cannot reach a bailout deal, while a Chinese stock market rout aggravated market jitters.
In Tokyo, the dollar weakened to ¥121.59 against ¥122.55 in New York while the euro fell to ¥133.86 from 134.89 yen. Japan's currency is seen as a safe bet in times of uncertainty and turmoil.
But the European common currency scratched back morning losses to sit at $1.1008, slightly up from $1.1007 in US trading.
"Greece is what's right in front of us, and personally I put the odds of a euro exit at 50:50," said Masato Yanagiya, head of foreign exchange at Sumitomo Mitsui Banking.
In the first step of its renewed bid for funding, Athens must submit detailed reform plans by Thursday, EU President Donald Tusk said after eurozone leaders held an emergency summit with Greek Prime Minister Alexis Tsipras.
All 28 European Union leaders will then examine the plans on Sunday in a make-or-break summit that could save Greece's moribund economy, or leave it to its fate.
"Tonight I have to say loud and clear - the final deadline ends this week," Tusk told a news conference.
And European Commission President Jean-Claude Juncker warned "we have a Grexit scenario prepared in detail" if Greece failed to reach a deal, although he insisted he wanted Athens to stay.
French central bank chief Christian Noyer said Wednesday that "chaos" could ensue if no agreement is reached.
"The Greek economy is on the edge of catastrophe. A deal absolutely must be found on Sunday because it will be too late after that and the consequences will be serious," he told French radio, adding that "there could be riots... and chaos in the country".
The move turns the heat up on Tsipras after Greeks voted Sunday against another round of painful austerity they say has crippled the country.
Market sentiment took another hit as Shanghai and Hong Kong plunged as fears about China's stock collapse spilled over into regional markets and sparked worries that it will hammer China's already struggling economy, the world's second biggest and a key driver of global growth.
The dollar rose against other Asia-Pacific currencies.
It climbed to 13 339 Indonesian rupiah from 13 302 rupiah on Tuesday, to 63.59 Indian rupees from 63.34 rupees, to 45.20 Philippine pesos from 45.08 pesos, to 34.04 Thai baht from 33.89 baht, to Tw$31.07 from Tw$30.96, to 1 136.73 South Korean won from 1 130.02 won, and to Sg$1.3570 from Sg$1.3522.
The Australian dollar eased to 73.90 US cents from 74.76c while the Chinese yuan slipped to ¥19.60 from ¥19.72.