TOKYO (AFX-ASIA) - The euro continued to weaken against the dollar in midafternoon trade, hit by growing capital repatriation by US fund managers, dealers said. "I went into this week with the strong belief that the euro would hold onto the parity," said Takashi Fujieda, foreign exchange assistant manager at Mizuho Asset Trust Bank. "But the sharp fall in the euro today clearly underscores the strength of ongoing capital repatriation by US fund managers, who are apparently trying to compensate for losses sustained on the US capital markets. "For the same reason, such currencies as Aussie and Canadian dollars have been weakening against the dollar," he noted. Receding selling pressure from overseas speculators is also supporting the rebound of the US currency against the euro, dealers said. "But given the underlying worries over the accounting scandals and shaky outlook for the US capital markets, the euro is not likely to lose its upward momentum," Fujieda said. "Until such worries are fully eliminated, there is a good chance that the dollar will resume its slide against the euro." The dollar was also higher against the yen thanks to its recovery against the euro, together with fears over possible intervention by the Japanese authorities, dealers said. "Depending on the extent of its recovery against the euro, the dollar may rise to as much as the 119 yen level," Fujieda said. "It seems that the dollar has already hit the bottom of the latest downtrend, at least against the yen, after having fallen to as low as 115.50 yen recently," he said.