The US dollar weakened against the yen in late trade after Japanese equities rebounded following a heavy two day sell-off that saw the Nikkei post its biggest single day drop since May 2004 and prompted the Tokyo Stock Exchange to close trade early yesterday, dealers said Dealers said the Nikkei's rebound sparked dollar-yen and euro-yen selling by a US bank, driving both currency pairs lower Aside from a brief move up around midday, the dollar continued to head south through the Asian day and accelerated in the afternoon, touching a low of 115.08 yen The euro opened around 1.2125 usd and then slipped under 1.2100 usd to 1.2087 usd amid selling by French and US banks. There were some late gains by the European currency but so far the rise has been limited to 1.2110 usd Looking ahead, the key event tomorrow in Asia will be the Bank of Japan's monetary policy statement due out after the bank ends its monthly two-day meeting. No change in BOJ policy is expected, but the accompanying statement will be closely eyed for insight into future interest rate actions "The stance in the immediate couple of quarters, however, will be a (continued) zero interest rate policy," said DBS Bank analyst Wong Keng Siong