The dollar declined against the yen and but advanced against the euro in Asian trading Tuesday amid renewed confidence in Japan's economy recovery and interest in that country's stock market. The dollar bought 109.39 yen on the Tokyo foreign exchange market at 11 a.m. Tuesday, down 0.15 yen from late Monday but above the 109.28 yen it bought in New York later that day. The euro fell to $1.2330 from $1.2396 on Monday. The dollar got a boost against the euro in New York Monday after the U.S. Treasury Department reported a rise in foreign buying of U.S. securities in June. But the dollar slipped back in Asian trading. Foreign investors recorded $71.2 billion in net purchases of U.S. securities in June, up from $55.8 billion in May, a report from Treasury International Capital Systems data showed. The British pound fell versus the dollar to $1.8066 from $1.8135 late Friday. The dollar rose to 1.2582 Swiss francs from 1.2465, and to 1.2033 Canadian dollars from 1.1955. The yen has been supported by recent signs of economic strength in Japan, as well as confidence in Prime Minister Junichiro Koizumi's leadership amid recent political upheaval. On Friday, numbers showed that Japan's economy grew 0.3 percent during the April-June quarter, its third straight quarter of expansion. At an annual pace, that's up 1.1 percent. Last week, Koizumi called elections for Sept. 11 after the Diet, or parliament, rejected a key plan to privatize the postal network and its enormous savings system. Investors lifted Japanese stocks more than 4 percent last week amid hopes that Koizumi will emerge victorious and the reforms will eventually be enacted. Figures released Friday showing a sharp increase in the U.S. trade deficit -- which leaves more dollars in the hands of foreigners -- also weighed on the dollar. The U.S. Commerce Department reported that the trade gap increased sharply in June to $58.8 billion, up 6.1 percent from May's deficit of $55.4 billion. Analysts see the dollar's gains as short-term because factors such as the widening U.S. trade deficit continue to weigh on the currency. "As the week goes on, we'll probably see the euro, pound and yen gain, and a bit more dollar weakness," said David Jones, chief market analyst at CMC Group.