LONDON (AP) — The dollar tumbled to a 14-year low against the yen yesterday as investor concerns about the debt problems afflicting Dubai prompted a rush towards safe haven assets, like the Japanese currency.

By mid-afternoon London time, the dollar was down 0.9 percent over the day at 86.61 yen, but a tad higher on the 86.27 yen level recorded earlier, which was the lowest level since July 1995.

Sentiment in the markets has been dominated by the news that Dubai World, a government investment fund with debts totalling around $60 billion, has asked creditors if it can postpone its forthcoming payments until May. That has stoked fears of a potential default and knock-on effects through the global financial system, particularly in emerging markets.

"These are the kind of stories which prompt risk aversion and reinforce the general belief that while the worst of the crisis is behind us, the global economy, and the financial system in particular, is not out of the woods yet," said Kit Juckes, chief economist at ECU Group.

As a result, he said the waning risk appetite has moved to strengthen the yen and the Swiss franc — both currencies are considered to be safe havens in times of waning optimism.

That has tested the tolerance of the Bank of Japan and the Swiss National Bank. Both central banks are worried that a rising currency would choke off fledgling economic recoveries by pricing out exports.

For the Swiss National Bank, the dollar's fall below parity against the Swiss franc has apparently been too much. Market watchers say the central bank intervened to stem the export-sapping appreciation in the Swiss franc by buying dollars. The central bank would not comment.

So far it seems to be working, with the dollar up 0.5 percent on the day at 1.0021 Swiss francs.

The Bank of Japan, however, has talked tough but has not intervened in the markets.

Finance Minister Hirohisa Fujii said Japan "will take appropriate steps if foreign exchange rates move abnormally."

And if nothing materializes, then there's every chance the dollar could fall even further against the yen, analysts said.

"The market should now zero in on the all-time lows of 1995, when the dollar briefly dipped below 80 yen to make a low of 79.90 yen," said Michael Hewson, analyst at CMC Markets.

That would swell concerns in Japan's boardrooms.

Toshiba Corp. President Norio Sasaki said the yen's appreciation could have a "severe impact" on the company, which makes everything from nuclear power plants to household electronics.

"I would like governments to coordinate in a bid to halt a surge in the yen," Sasaki told public broadcaster NHK.

The dollar has been generally weaker across the board, particularly since Tuesday, following the publication of the minutes to the U.S. Federal Reserve's last rate-setting meeting on Nov. 3-4.

The Fed said at the time that it plans to keep interest rates at "exceptionally low levels" for an "extended period" — currently the Fed funds rate stands at a range between zero and 0.25 percent — and that the fall in the dollar had been "orderly." Currency traders seized on the reference to the dollar as the Fed is usually wary of talking about changes in currency values.

The dollar managed yesterday to recoup a chunk of earlier losses against the euro, which was down 0.4 percent on the day at $1.5067, having earlier risen to $1.5144, its highest level since August 2008.

The dollar's latest plunge also adds to concerns over China's tight currency controls, which its trading partners say are giving it an unfair advantage in export markets.

While the yen, euro and Australian dollar are bearing the brunt of the dollar's weakness, the Chinese yuan remains loosely pegged to the dollar — a level that American critics say is artificially low. Beijing has been cool to suggestions it ease its currency practices to allow the yuan to strengthen.

One currency the dollar was doing particularly well against was the British pound, which was 1 percent lower at $1.6537.

Hans Redeker, global head of foreign exchange strategy at BNP Paribas, said Dubai World's "debt debacle" was working against the pound on fears of the British banking sector's involvement in the region.