LONDON (AFX) - The euro remained well-supported against the dollar, bouncing back over the 1.01 usd level in midday trade ahead of an expected sharp equities sell-off on Wall Street, dealers said. However, the impact of lower US equities on the back of Worldcom's latest woes isn't likely to excite too much as it's already priced in, said Kamal Sharma, currency strategist at Commerzbank. "The underlying sentiment is to sell the dollar into a rally," he said. 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. The Bank of Japan's governor Masajuro Hayami said the BoJ will continue to make maximum efforts to secure stability in financial markets and expand monetary easing effort through liquidity injections. "This remark indicates that the BoJ is not only considering an easing in its monetary current account surplus, but that domestic and international asset markets have entered the BoJ's considerations," said Hans Redeker, global head of forex strategy at BNP Paribas. He noted that further US asset market weakness will increase the US administration's willingness for forex co-operation.