TOKYO: The dollar slipped in Asia on Monday as investors adjusted positions ahead of a key US Federal Reserve policy meeting this week that 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 102.81 yen in Tokyo late morning 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 141.44 yen compared with 141.81 yen in New York. The single currency was at $1.3747 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 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 0.65 percent by the break.
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.
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