TOKYO (AFX-ASIA) - The dollar was pushed lower against the yen in midafternoon, hit by stop-loss dollar selling and growing concerns over the escalating tension in the Middle East, dealers said. "Almost all eyes are now glued to developments in the Middle East," a Credit Lyonnais dealer said. "While the dollar normally attracts safe-haven buying when there is political tension, it has failed to do so this time because the US itself is not the third party in this case," he said. Decline in the level of confidence in the US President George W Bush's ability to smoothly settle the political tension in the Middle East is also hurting the dollar, dealers said. "The market is now fearing the risk of the situation developing to the extent of a war in the Middle East," the Credit Lyonnais dealer said. "Until we see a clearer direction on the situation in the Middle East, the dollar/yen is not likely to move out of the recent trading range," he said. Concerns over large fund allocation to overseas assets by Japanese investors are supporting the downside of the dollar against the yen, dealers said. The euro was higher against the dollar due to flight-to-safety asset flow amid concerns over the Middle East situation, but it turned top-heavy due to fears over the adverse impact of sharp rise in crude oil price, dealers said. "Given the uncertainty over the Middle East and crude oil price, sterling pound, swiss franc and the Aussie dollar look to be more safe for investment," the Credit Lyonnais dealer said.