The US dollar was top-heavy against other major currencies because of profit-taking triggered by disappointment over the US currency's failure to top convincingly its recent peak, dealers said.
At 12.30 pm (0330 GMT) here, the euro was quoted at 1.1974 usd, compared to 1.1974 usd in Sydney over four hours earlier. The dollar was changing hands at 118.87 yen, compared to 118.99 yen in Sydney.
"The dollar's gains today were capped around the recent peak level of 119.39 yen, because this level is also a key resistance level on charts," said Commerz Bank treasurer Ryohei Muramatsu.
"But if this level is breached, the unit may move to test the 120 yen level, as underlying bullish sentiment towards the dollar remains intact," he said.
A hawkish comment by Dallas Federal Reserve president Richard Fisher continued to support expectations about a widening of the difference between interest rates in the US and the rest of the world, dealers said.
Speaking in London, Fisher said the US Federal Reserve will continue to keep inflation under control and that the data will drive its actions.
"The market is more inclined to the perception that US interest rates will rise further," Muramatsu said.
"Reflecting such a view, Japanese retail and institutional investors also continue to show strong interest in buying the dollar on its dips," he said.
The euro was little changed, after it slipped to below the mid-1.19 usd level overnight on renewed concerns about widening differences between interest rates in the euro-zone and the US.