The dollar rose against the yen in Asian trading Tuesday after being down for much of the session. It was also higher against other Asian currencies. The dollar bought 110.03 yen on the Tokyo foreign exchange market at 3 p.m. (0600 GMT) Tuesday, up 0.15 yen from late Monday and above the 109.76 yen it bought later that day in New York. The yen climbed in early trading as foreign investors rushed to buy the currency so they could purchase Japanese shares amid a brighter outlook for the country's economic recovery. But the currency lost steam along with Tokyo stocks by mid-afternoon. The Nikkei 225 index rose as much as 1.3 percent in interday trading but finished just 20.42 points, or 0.16 percent, higher at 12,472.93 on the Tokyo Stock Exchange as investors locked in their gains. Foreign investors helped push the yen and the Nikkei higher after the benchmark index jumped 1.3 percent Monday to finish at its highest level since July 5, 2001. But some dealers said Tuesday's trading tested the limits to the yen's recent strength due to rising stock prices and growing public support for Japanese Prime Minister Junichiro Koizumi before parliamentary elections on Sept. 11. "For the moment, the yen-buying mood is strong, but Japanese stocks can't just keep rising forever," said Tomoo Onishi, director of global markets at Deutsche Securities. The euro rose to US$1.2200 from US$1.2183 late Monday, benefiting from the yen's early advance against its U.S. rival.