TThe U.S. dollar regained some more ground in Asian trading Monday following its drop in response to China's decision last week to scrap the yuan's peg to the U.S. currency. The dollar was trading at 111.58 yen in Tokyo midafternoon, up 0.74 yen from late Friday and above the 111.20 yen it bought later that day in New York. It had fallen as low as 109.90 in New York on Thursday. The euro declined to US$1.2056 from US$1.2177 late Friday. On Thursday, China announced it would revalue the yuan by 2.1 pct and abandon its peg to the US dollar in favor of an undisclosed basket of currencies. As expected, the dollar initially fell sharply, but since late Friday has begun a slow recovery, which continued as the week started this morning in Asia. Players said the unexpectedly small adjustment to the yuan exchange rate -- to around 8.11 from 8.28 against the dollar -- and the fact that China's central bank provided few details, particularly about the components of the basket, gave little impetus for a prolonged dollar sell-off. In addition, most players believe that although pressure will again mount on China to deliver a more decisive revaluation, it appears unlikely that the Chinese government will concede anytime soon. "The mechanism instituted by China does give them room to slowly and steadily appreciate their currency, even as it rules out further one-off changes of significance in the value of the yuan," UBS foreign exchange strategist Bhanu Baweja wrote in a note. "As the market took the view that another move higher in the yuan may not come in a hurry, the trading focus shifted to covering the large near-term US dollar shorts that had been instated as soon as China moved," he added.