LONDON (AFX) - The dollar regained some more ground against the yen in early trade on continued talk of possible intervention by the Japanese authorities, dealers said. However, the dollar was suffering against the euro as US equity markets remain in the doldrums, with the futures market indicating another drop on Wall Street later today. "Equity markets are still the focus," said Neil Mackinnon, chief economist at ECU Group. "That will certainly weigh against the dollar." Nevertheless, Mackinnon noted that the impact of sliding equity markets is diminishing as real money and speculative investors have already got their positions in. Meanwhile, dollar/yen retraced some losses and settled above the 116 level following further comments from Japanese officials about possible intervention. Finance minister Masajuro Skiokawa said the Japanese Ministry of Finance is ready to act anytime if the yen oscillates wildly, adding that it would be desirable to see a weaker yen given the current Japanese trade balance. Rob Hayward, currency strategist at ABN Amro said the Japanese authorities would like to see dollar/yen lurch back towards 117.75, but added that it was unlikely to happen with US equities in the doldrums. In this environment, dollar/yen is likely to fluctuate betweeen 115.50-117.75, he said. ECU Group's Mackinnon agreed that dollar/yen has probably already hit the floor for now as the markets are on alert for MoF/BoJ intervention. "The market doesn't have the enthusiasm to take them on," he said. Elsewhere, the Swiss franc is likely continue to benefit from renewed safe haven flows, said Mackinnon.