The dollar was higher against the yen in late holiday-thinned trade here, as investors bought the greenback as a 'safe haven' instrument amidst concerns over spiraling violence in the Middle East, dealers said. The markets in Japan and South Korea were closed today for public holidays. Most investors attention has been focused on the ongoing conflict between Israael and Lebanon and the spike in oil prices to over 78 usd a barrel. Earlier today light sweet crude oil for August delivery was up $0.37 at $77.40 per barrel after the contract had touched a fresh record high of $78.40 a barrel in electronic trading on Nymex last Friday, before settling at $77.03. "As tensions in the Middle East show no signs of abating, risk aversion trades were favoured as investors continued to go for safety," currency dealers at UBS AG said. There is also apprehension over some key US data and events due this week, which are expected to provide hints on what the Federal Reserve might do at its next meeting in August, dealers said. This data releases include CPI and PPI data, while on Thursday, US Federal Reserve Chairman Ben Bernanke testifies on monetary policy to the House Financial Services Committee, which will be followed by the release of minutes from the June 28-29 FOMC meeting. The euro-dollar dropped from pre-Asian levels of $1.2655 this morning and then drifted below its Friday lows of $1.2626 to mark a low of $1.2621 around midmorning in Singapore. While the euro-dollar inched up in afternoon trade in Asia, the gains have been limited to around $1.2640, still below its late New York quote of $1.2650 Friday, with US names spotted among the main euro sellers. Trade in the Japanese yen was light today as Japan marked its Marine Day holiday, with the euro bouncing off an early low of 146.76 yen to take back morning highs near 147.10, while the dollar climbed back to near its early peak of 116.40-45 yen.