A weaker euro helped the US dollar recover some lost ground to end the Asian session off the lows it marked against the yen after the general election in Japan on Sunday At 3.05 pm (0705 GMT) here, the dollar was at 109.91 yen, up from 109.68 yen just over 2-1/2 hours earlier in Tokyo. The euro was at 1.2321 usd, down from 1.2329 usd in Tokyo The dollar had fallen to 109.00 yen from 109.70 late yen Friday in the US after Japanese Prime Minister Junichiro Koizumi's Liberal Democratic Party won a landslide victory in the election. But the dollar rebounded when the euro fell on concerns that Germany's general election this weekend could result in deadlock The Cabinet Office in Tokyo said the the Japanese economy grew an upwardly revised 0.8 pct in real terms in the April-June quarter, or at an annualized rate of 3.3 pct, expanding for the third consecutive quarter. That compared with initial estimates of a 0.3 pct expansion, or a 1.1 pct annualized growth rate "With election euphoria jostling with economic data for limelight, the Japanese yen may be slightly volatile this week, though we think that it should retain a firm undertone at a range of 108.50-110.50 yen per dollar," said Bank of Tokyo-Mitsubishi's Singapore economist, Wong Keng Siong There is a fairly heavy US data calendar this week, which will be scrutinized for signs of the economic damage Hurricane Katrina inflicted on the US and for hints as to what the Federal Reserve might do at the next meeting of the its policy-setting body, the Federal Open Market Committee, and after "No one expects US economic data from now till next week's FOMC meeting to provide enough clarity to prevent another rate increase on Sept 20," a strategist at Singapore's DBS Bank wrote "Nonetheless, speculation is increasing for Fed to remove the 'measured' language to allow it more flexibility to deliver an 'insurance pause', if necessary, while maintaining its rate hike bias," the strategist added The key data releases this week include the US July trade balance on Wednesday and the Treasury International Capital System portfolio flows data on Friday The US trade deficit is expected to have widened to 60.0 bln usd in July from June's 58.8 bln usd, reflecting a further rise in imported petroleum costs, while exports were likely restrained by a sharp drop in aircraft orders "We continue to view the approach of the end of the Fed's tightening cycle and an environment of reduced risk appetite as problematic for the capital-hungry US dollar, and target euro-dollar at 1.2700 usd in one month's time," UBS forex strategist Ashley Davies said in a daily note