TOKYO: The dollar slipped in Asia on Monday as investors adjusted positions ahead of a key US Federal Reserve policy meeting this week which could see the bank announce a cut to its stimulus programme.
The greenback -- which had touched a five-year high 103.93 yen on Friday before easing later in the day -- fetched 102.84 yen in Tokyo afternoon trade, against 103.23 yen in New York Friday.
The euro, which also hit a five-year high of 142.83 yen against the yen on Friday before falling back -- bought 141.41 yen compared with 141.81 yen in New York. The single currency bought $1.3752 from $1.3738.
A string of upbeat data out of the United States in recent weeks has fuelled speculation the Fed will announce a reduction in its $85 billion a month bong-buying scheme at the end of its two-day meeting Wednesday.
Opinion was split on whether it will begin winding down its bond-buying programme this month or early next year.
"There remains a considerable degree of uncertainty about the timing of Fed tapering, with most market participants split between this week and January 30th," Credit Agricole said.
The dollar-yen rate also weakened as markets took a cue from falling Japanese share prices, said a senior dealer at a major bank in Tokyo.
The Japanese stock market and the dollar-yen rate are closely linked, with a weaker yen positive for shares of exporters such as Toyota and Sony.
The benchmark Nikkei 225 index was down 1.28 percent in afternoon trade.
Currency rates hardly moved soon after the Bank of Japan released said its Tankan survey of business confidence had hit a six-year high in the October-December period, underscoring growing optimism among major firms.
The dollar was mixed against other Asia-Pacific currencies.
The greenback rose to 12,120 Indonesian rupiah from 12,030 rupiah on Friday, to 62.20 Indian rupees from 62.13 rupees, and to Tw$29.64 against Tw$29.62.
It inched lower to 1,052.55 South Korean won from 1,052.95 won, to Sg$1.2553 from Sg$1.2564, to 44.17 Philippine pesos from 44.21 pesos, and to 32.02 Thai baht against 32.08 baht.
The Australian dollar edged up to 89.52 US cents from 89.36 cents Friday afternoon.
The Australian unit fell below the 90 US cent mark last week as the head of the country's central bank said he wanted to see it at 85 US cents to help stimulate trade-exposed sectors of the economy.
The Chinese yuan weakened to 16.91 yen from 17.06 yen.
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