The dollar crept higher on Tuesday, but remained within sight of three-month lows against the euro and the yen on expectations that the Federal Reserve will soon end its 18-month cycle of dollar-boosting interest rate rises. The dollar lurched to its lowest level since October against the euro on Friday and then against the yen on Monday after last week's surprisingly weak U.S. jobs report added momentum to a sharp sell-off of the U.S. currency. Dealers said speculators were buying back dollars in Asian trading to lock in profits after the yen's sharp rise. But most said the dollar had more room to fall if U.S. economic data continued to disappoint. "Last week's jobs data has tilted the market more in favour of an end to rate rises after January," said Hideaki Furumaya, forex manager at Trust and Custody Services Bank, adding that this was keeping the dollar under pressure. "Although we need to see more data to gauge what the Fed will ultimately do, the market is fully aware by now that there is no way rates are going to rise at the pace they did last year." By 0645 GMT, the euro was trading around $1.2053 , down about 0.25 percent from its level in late New York trade, and off Friday's high of $1.2185. The dollar was trading around 114.52 yen , little changed from late New York and about 6 percent below a 2-Ѕ year high of 121.40 yen struck in early December. Some traders said the yen was also supported by rising Asian currencies including the South Korean won, which hit an eight-year high against the dollar on Monday. There was little reaction to a comment by the head of the research bureau of the People's Bank of China that the central bank was unlikely to dump the dollar-denominated assets in its foreign reserve holdings in favour of other currencies. Tang Xu told Reuters the market had wrongly assumed that last week's statement by the State Administration of Foreign Exchange that it would explore other ways to use reserve assets meant that Beijing could diversify its holdings away from the the dollar. The statement had added to dollar-selling pressure. China's foreign reserves, now the world's second-largest at about $800 billion, are growing so quickly that many expect them to top $1 trillion this year, overtaking Japan.