TOKYO: The dollar rebounded from its lowest level in seven weeks against the yen in Asia on Friday, lifted by purchases from Japanese importers, dealers said.
The dollar fetched 80.47 yen in Tokyo afternoon trade, up from 80.04 yen late Thursday in New York where the greenback briefly fell below 80 yen.
Weak data on Thursday sparked concerns over the US economy, sending the dollar below 80 yen for the first time since March 18 when Group of Seven economic powers intervened to stem the yen's post-earthquake strength.
But the dollar trimmed losses on demand from Japanese importers, expectations of a possible yen-selling intervention by Tokyo and position adjustment before the weekend, dealers said.
Japanese Finance Minister Yoshihiko Noda told reporters Friday he would "closely monitor" the currency market, stopping short of threatening intervention.
Officials stressed the movements were a case of dollar weakness, as opposed to the strength of the Japanese unit -- which in the immediate aftermath of the March 11 earthquake prompted the concerted G7 move.
The euro recovered to $1.4565 from $1.4541 in New York late Thursday, having plunged Thursday after the European Central Bank signalled that it was not likely to raise interest rates anytime soon.
The euro traded at 117.25 yen, up from 116.43.
Keiji Matsumoto, currency strategist at SMBC Nikko Securities, said the dollar may fall below 80 yen again if concerns over the US economy are back in the spotlight.
Uncertainty over the global economy has prodded investors to reduce their bets on riskier assets, prompting an unwinding of short positions on the dollar.
"The key is whether fresh dollar-selling will emerge after such unwinding is completed," Matsumoto told Dow Jones Newswires.
He said another concerted intervention by G7 is unlikely to take place, but intervention by Tokyo alone can be accepted by its G7 partners as Japan is still reeling from the March 11 earthquake and tsunami.
Further credit easing by the Bank of Japan could be an option if the yen strengthens sharply, Matsumoto added.
The dollar rose against most Asian currencies, gaining to Sg$1.2350 from Sg$1.2307 on Thursday, to 30.17 Thai baht from 30.09, and to 8,580.00 Indonesian rupiah from 8,553.00.
The greenback also firmed to 43.07 Philippine pesos from 42.93 and to Tw$28.66 from Tw$28.59.
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