The euro retreated after hitting a 4-1/2-month high against the dollar on Tuesday but expectations of a eurozone interest rate hike next month could limit any downside for the single currency. The yen traded in a tight range, hovering around 81 per dollar.
In the near term, analysts said the 80 area could serve as a floor as markets were wary of further intervention by the Group of Seven nations to counter yen strength after Japan's earthquake, tsunami and resulting nuclear crisis.
The euro climbed as high as $1.4249 on trading platform EBS, but gave up gains after running into options-related barriers at about $1.4250. Further resistance is seen around $1.4280, the November high.
The euro last traded at 1.4201, down 0.2 percent on the day. Technical analysts at Citigroup said they expect a test of the $1.48-$1.51 area in the near term. The euro hit around $1.5144 back in November 2009. The dollar last traded at 81.00 yen, down marginally on the day but in the middle of the day's narrow range of 80.85-81.29 yen on EBS.
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