The dollar was slightly lower against the yen in Tuesday trading in Asia as massive dollar-selling helped curb its recent rise. Overseas market participants, particularly Middle Eastern investors, sold the euro for yen, as news of the issuance later in the day of dollar-denominated bonds worth US$500 million by a major German brokerage house sent the euro lower, dealers said. "Some extreme euro-bears now even predict the currency will fall to around 1.2000 to the dollar," said Katsuhiro Kaneko, senior foreign exchange manager at Mitsubishi Securities. The likelihood of French voters rejecting the European Union constitution has also been weighing on the euro, traders said. France holds a referendum on the issue on Sunday. The market's attention was turning to the release later in the day of Federal Open Market Committee minutes for indications of the U.S. Federal Reserve Board's stance on inflation, which may show whether the Fed will continue to raise interest rates. Higher interest rates tend to boost the value of a nation's currency. Overnight in New York, the dollar fell against the yen as market players locked in profits following the currency's rally late last week. Prospects that the Fed will continue to raise interest rates have helped push the dollar higher recently, offsetting the negative effect from worries about the massive U.S. trade and budget deficits.