TOKYO: The dollar slipped against the yen in Asia on Thursday as investors locked in profits on the greenback's recent surge, while the euro was weak on gloomy European growth data.
The currency market's reaction to upbeat Japan economic growth data was muted despite figures showing the world's third-largest economy expanded 0.9 percent between January and March from the previous three months.
In morning Tokyo trade, the dollar bought 102.05 yen, briefly falling below the 102-yen mark and down from 102.23 yen in New York late Wednesday. However the greenback was still trading well above the 98-yen range a week ago.
The euro also weakened against the Japanese currency and was at 131.37 yen from 131.72 yen in US trade, while it slipped to $1.2875 from $1.2884.
"Today's moderate setback (in the dollar) is due to cautious sentiment among players as they adjust their trading positions after the dollar surged so fast," said Yosuke Hosokawa, senior dealer with Sumitomo Mitsui Trust Bank.
"But the overall dollar-buying trend has yet to change."
Japanese stocks have surged since December as the yen plunged with the government pushing for active spending and the Bank of Japan carrying out massive monetary easing, which tends to weigh on the currency.
Thursday's solid GDP data briefly triggered yen selling as investors remained convinced Tokyo would keep its easy-money policies in place, but the data's overall impact was limited, Hosokawa said.
The euro was weak after official figures showed the eurozone economy shrank 0.2 percent between January and March, the sixth consecutive quarterly contraction and marking the longest recession since the bloc was established in 1999.
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