The Japanese yen continued to falter against the euro and dollar on Thursday, following signals from Japan's newly appointed Prime Minister that emphasized a cautious approach to interest rate hikes by the central bank.

Amidst these developments, the Aussie dollar managed to climb to a two-week high, buoyed by a significant drop in the unemployment rate, which outperformed economists' forecasts.

Currency markets are bracing for volatility with the anticipated end of the U.S. government shutdown, potentially unlocking crucial economic data reports. Meanwhile, Japan's Finance Minister issued a cautionary note regarding the yen's rapid weakening against the dollar, suggesting possible future interest rate hikes.

(With inputs from agencies.)

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