The dollar expanded its gain against the yen and turned a modest loss against the euro into a gain following the release of a report that showed the U.S. trade gap contracted in July. The euro was changing hands at $1.2261 compared to $1.2287 before the report. The dollar stands 0.2% higher against the euro compared to late Monday. The dollar was fetching 110.97 yen compared to 110.81 yen before the report, up 0.6% on the day. The U.S. trade deficit narrowed by 2.6% in July to $57.9 billion. The consensus forecast was for a deficit of $59.5 billion. The trade gap for June was revised higher to $59.5 billion, compared with the initial estimate of $58.8 billion.