1st LD Writethru: U.S. dollar drops to two-week lows against yen

The U.S. dollar slipped against most major currencies and fell against the Japanese yen to two- week lows on Wednesday.

The yen gained over 1.3 percent against the greenback after Bank of Japan Governor Haruhiko Kuroda said the Japanese currency was "very weak" and unlikely to weaken further, triggering investors to cutback huge bets against the yen.

The dollar index, which measures the greenback against six other major peers, was down 0.54 percent at 94.651 in late trading, snapping a three-session losing streak.

Meanwhile, investors kept an eye on the labyrinthine development of Greece debt crisis

The European Commission said on Wednesday that Greece's new reform proposal floated on Monday was insufficient and "does not reflect" the result of discussions between European leaders last week, dousing hopes for the debt-ridden country to unlock the final 7.2 billion euros (8.1 billion U.S. dollars) in bailout financing.

Meanwhile, another reports said that the international creditors agreed to release more bailout cash to Greece.

Investors were also awaiting the country's closely-watched retail sales report due out Thursday.

In late New York trading, the euro rose to 1.1316 dollars from 1.1280 dollars in the previous session, and the British pound climbed to 1.5528 dollars from 1.5375 dollars in the previous session. The Australian dollar went up to 0.7759 dollars from 0. 7682 dollars.

The U.S. dollar bought 122.70 Japanese yen, lower than 124.35 yen of the previous session. The U.S. dollar inched up to 0.9314 Swiss francs from 0.9310 Swiss francs, and it decreased to 1.2264 Canadian dollars from 1.2337 Canadian dollars. Endite