The euro retreated to $1.3887 in Tokyo morning trade from 1.3905 in New York late Tuesday. The single European currency rose to 115.02 yen from 114.91 yen. The dollar firmed to 82.83 yen from 82.64 yen.

"The dollar drew buybacks after suffering broad-based selling earlier on view that rising crude oil prices would be negative to the US economy," said Teppei Ino, analyst at the Bank of Tokyo-Mitsubishi UFJ.

Saudi Arabia's assurances Tuesday that it would counter any disruptions of the global oil market pushed crude prices down Tuesday, giving a boost to the US stock market.

The world's largest oil supplier, Saudi Arabia has 3.5 million barrels per day in spare capacity and is building up inventories in strategic locations, Oil Minister Ali Naimi said in a statement clearly aimed at calming markets.

"The Kingdom of Saudi Arabia has long been committed to promoting market stability in the interest of both producers and consumers, and in support of global economic growth and development," Naimi said