The dollar was higher against the yen in Asian trading Tuesday, as buying by Japanese importers and trading firms buoyed the U.S. currency in thin trading ahead of the year-end holiday season. The dollar was trading at 116.60 yen at mid-afternoon in Tokyo, up 0.57 from its level in New York late Monday. The euro fell to US$1.1986 from US$1.2013 late Monday in New York. U.S. investment banks also bought dollars, pushing the U.S. unit as high as 116.80 yen. The dollar's resilience has convinced many players that the currency's recent decline has run its course, traders said. "Some players are still waiting to sell (dollars) on rallies, but the panicky selling seen last week seems to have ended," said Takeshi Iba, head of Tokyo currency trading at Calyon Corporate and Investment Bank. The dollar also gained against the euro even though Bank of France Governor Christian Noyer suggested the European Central Bank may raise interest rates again if crude oil prices remain high and inflation accelerates. Higher interest rates tend to boost a country's currency by making its bonds and other interest-bearing assets more attractive to investors. A stronger euro would hold down inflation in Europe by reducing the cost of oil, which is denominated in dollars. In an interview with the Nihon Keizai newspaper published Tuesday, Noyer said it is important to prevent energy price rises from spreading through euro-zone economies. But he also said the ECB has already made it clear that its 25-basis-point interest rate hike earlier this month isn't necessarily a prelude to further rate increases. Calyon's Iba said few traders were interested in buying euros as the year-end holidays approach, but he expected interest in the currency to pick up soon. "It's a bit early, but I think it's already Christmas time for the euro," he said.