LONDON (AFX) - The dollar was lower against major currencies in early trade after sharp US equity losses overnight intensified the negative sentiment towards the dollar, dealers said. "The dollar took a caning yesterday on the Naqdaq losses," Paul Bednarczyk at 4Cast said. He said news of the forced resignation of Tyco chief executive officer Dennis Kozlowski, who is the target of a Manhattan District Attorney probe of his personal taxes, took its toll on US equity market sentiment. News of the suicide of the Treasurer of El Paso Energy Corp Charles Dana Rice, further weighed on US stock prices. The yen was slightly firmer against the dollar, despite the persistent possibility of Bank of Japan intervention. However, for the moment there seems to be no sign of intervention. "There seems to be no sign of life at the Bank of Japan," Bednarczyk said. However, if the yen "rushes below 123" [versus the dollar], the BoJ is likely to step in to weaken the yen. The main focus in the market continues to be the negative dollar sentiment, Bednarczyk said. "People are even looking for bad news in good US news," he said. The euro was higher, continuing to benefit from the gloomy dollar sentiment. Sterling was higher, tracking broad eur-usd moves. The Australian dollar was higher on expectations of a Reserve Board of Australia interest rate hike tomorrow. "We reckon they'll raise rates tomorrow in Australia, and the weak dollar is helping too," Bednarczyk said.