The U.S. dollar fell against the Japanese yen and the euro in Asian trading Tuesday after the Chinese central bank governor reiterated that China wants to reform its currency regime at a monetary conference in Beijing. The dollar was trading at 106.98 yen Tuesday afternoon, down 0.31 yen from late Monday in Tokyo but above the 106.90 yen it bought in New York later that day. The euro rose to US$1.2276 from US$1.2263 but fell to 131.32 yen from 131.53 yen. The market closely watched for signs among central bankers attending the International Monetary Conference about a possible revaluation of the Chinese yuan, which is pegged to the dollar. A boost in the yuan would be expected to lower the value of the dollar, while raising other Asian currencies. Critics say the practice has undervalued the Chinese currency and given the country a tremendous trade advantage over U.S. companies. People's Bank of China Governor Zhou Xiaochuan reiterated that China wants to reform its currency regime, but added that a careful analysis was needed to gage the impact of such a change on China's economy and make sure its financial system was prepared. U.S. Federal Reserve Chairman Alan Greenspan, participating via a video link-up, repeated previous comments that it would be good for China to stop pegging the yuan tightly to the U.S. dollar. Greenspan said an end to the yuan peg would boost China's economy by making it more flexible. But he also said he doubted the change would have much impact on America's record US$162 billion (euro132 billion) trade deficit with China. Speculation about a possible revaluation put pressure on the dollar Tuesday, which fell against most other Asian currencies too. Late Tuesday, it was trading at 1.6612 Singapore dollars, down from S$1.6632, and at 31.183 Taiwan dollars, down from NT$31.190. The Australian dollar was up at US$0.7673 from US$0.7651. At the same conference in Beijing, European Central Bank President Jean-Claude Trichet was vague about whether the European Central Bank would lower rates to stimulate economic growth, which is something that could hurt the euro down the road, traders said. "Generally speaking, the euro is very heavy" after French and Dutch voters rejected a proposed European Union constitution, said Takeshi Iba, head of Tokyo foreign exchange at Calyon Corporate & Investment Bank. "Sentiment for the euro is on the selling side and Trichet's comments could become one of these factors," he said.