The dollar recovered some of its losses against the euro and yen Thursday in Asia after dipping sharply in European and American trade on renewed worries about the massive U.S. trade deficit.
The dollar bought 102.54 yen by late morning in Tokyo, down 0.70 yen from late Wednesday but above the 102.38 yen it bought in New York overnight.
The euro rose to $1.3248 from $1.3117, but still below the $1.327 it bought in late New York trade. The euro also gained against the Japanese currency, to 135.90 yen from 135.44 yen.
But the dollar was down against most other regional currencies in early trading from previous day levels, declining against the Hong Kong dollar, South Korean won and Philippine peso.
On Wednesday, the U.S. currency also lost heavily against the British pound, which jumped to $1.8914 in late New York trading from $1.8776 late Tuesday. The dollar bought 1.1658 Swiss francs, down from 1.1813; and 1.1995 Canadian dollars, down from 1.2170.
Worries over the wide U.S. trade and budget deficits have been the key factor in the dollar's decline in recent months against the euro, which reached a record high of $1.3667 on Dec. 30.
The Commerce Department said the November deficit was up 7.7 percent from an imbalance of $56 billion in October, which had been the previous monthly record. The new record -- $60.3 billion -- surprised private economists, who had forecast a slight narrowing in the trade gap.
Last week's mini-rally came as the dollar garnered support from optimism about economic growth in the United States.
While Washington insists it has a "strong dollar" policy, many analysts believe the U.S. government is content to see the dollar fall because it makes U.S. exports cheaper.
Comments reaffirming the "strong dollar" policy this week by U.S Treasury Secretary John Snow were seen by markets as indicating a hands-off approach and failed to strengthen the currency.
On Wednesday, Snow played down the record trade deficit, telling reporters in New York that "the trade gap reflects the fact that Americans are becoming more prosperous."