The U.S. dollar slid against regional currencies and the euro in Asian trading Tuesday as dollar-selling spread for technical reasons that dealers said were unlikely to last.
The U.S. dollar was trading at 104.69 yen in Tokyo by mid-afternoon, down 0.99 yen from late Monday. U.S. financial markets were closed Monday for the Presidents Day holiday.
The euro rose to US$1.3173 Tuesday afternoon in Tokyo from US$1.3064 late Monday. The 12-nation European currency was at 137.89 yen, down from 138.10 yen.
The greenback also slipped against most regional currencies, ending down at 54.753 Philippine peso from 54.830 the previous day, and to 1,011.7 South Korean won from 1,023.5. It also fell to 38.47 Thai baht from 38.565.
"Today's dollar sales were rather technical. I don't think the dollar will continue to fall," said Masamichi Koike, head of foreign exchange spot trading group at Sumitomo Mitsui Banking Corp. in Tokyo.
The dollar also fell against the euro as dollar-selling in Asia spread. The dollar rebounded from a steep fall late last year, but worries over the U.S. trade and budget deficits have prevented it from making a stronger comeback.
Players are awaiting Japanese trade numbers being released Wednesday for dollar-buying signs. The yen has weakened in recent sessions after data released last week showed Japan was undergoing a moderate economic slowdown.
The dollar soared after government data showed the economy shrank for three straight quarters -- including the latest quarter although analysts had expected slight growth during that period.