The dollar stayed near an eight-week high against the euro on Monday after a strong U.S. employment report further trimmed expectations the Federal Reserve will cut interest rates from 5.25 percent this year. The yen hovered within reach of a 4 1/2-year low against the dollar at 122.00, little changed after giving up earlier gains as investors shunned the yen for overseas assets with higher returns than Japan's paltry 0.5 percent. A tumble in China's stock market benchmark, the Shanghai Composite Index, of as much as 7.6 percent <.SSEC> raised concerns about risk aversion, prompting speculators to trim carry trades, in which low-yielding currencies such as the yen are borrowed to purchase assets offering higher returns. But yen selling resumed as Asian financial markets on the whole reacted calmly to the slide in stocks. "We saw some yen buying on risk-reduction trades, but such trades are unlikely to continue," said a forex trader at a Japanese bank. "The market remains fixated on rate differentials, which means the yen is likely to fall further." The euro was at $1.3450, flat from U.S. trade on Friday. The pair remained within sight of the eight-week low of $1.3392 hit on electronic trading platform EBS late last week