LONDON (AFX) - The euro was weaker against the dollar in early London trade as currencies settled back into their ranges with liquidity returning to the market as the UK markets reopened after the 2-day public holiday to mark Queen Elizabeth II's 50th year as head of state, dealer said. "They are settling back into their ranges after the holiday," Steve Pearson at Halifax Group Treasury said. The yen weakened against the dollar, but dealers said it was unclear whether the Bank of Japan was stepping in again to weaken its currency. "It's not the BoJ this morning as far as we know," one dealer said. "It's not official," another said. The yen has strengthened overnight, as investors switch out of US equities into Japanese stocks, he added. "It's a self perpetuating cycle," Pearson said, noting that the switch fuels Nikkei gains, which in turn boosts the yen prompting the Bank of Japan to intervene. Yesterday's latest burst of intervention from the BoJ has failed to keep usd-yen above the convincingly 124 level, against a backdrop of Nikkei gains and US stockmarket falls overnight. Kamal Sharma, currency strategist at Commerzbank, said yesterday's intervention demonstrates the Japanese authorities commitment to stemming a stringer yen, stretching to outside of the Japanese trading session and into Europe on Tuesday morning. The 'out of hours' move "sends a strong signal to sellers of usd/yen", Sharma said. However, US equities remain the focus of attention. Yesterday Wall Street trade was volatile, culminating with the DJIA closed down 21.95 points at 9,687.84. "The plunge in US stocks is keeping the dollar under pressure," Pearson said. However, Pearson said the euro is not showing more convincing signs of strength against other currencies, independently of dollar weakness. "How sustainable this strength is remains to be seen," he added. Sterling was lower against the dollar, after coming under strong selling pressure on Friday after a large sell order went through in the New York session, dealers said. Euro-sterling remained strong, but off highs, as market players voiced concerns about the sustainability of these levels. "At the moment sterling is getting no benefit from the UK's strong fundamentals," Pearson said. "The EMU argument is a spent force," he said, noting that opinion polls are only pointing to a 50 pct chance of a 'yes' outcome in a referendum on UK entry to the single currency. "There's not much upside in it," he added.