TOKYO: The dollar slipped slightly against other major currencies in Asian trade Wednesday as investors' risk sentiment improved following gains in US stocks in New York overnight.
The euro fetched $1.2296 in Asian trade compared to $1.2292 in New York late Tuesday. The European currency dipped against the yen, buying 97.21 yen from 97.23 yen.
The dollar was quoted at 79.06 yen, down from 79.10 yen.
The euro "rebounded as US share prices rose" after initially falling against the greenback when US Fed chief Ben Bernanke did not give Congress details of more monetary easing, said Masafumi Yamamoto, chief currency strategist at Barclays Capital.
The Federal Reserve chairman told Senate lawmakers that the economy was poised to slow further from the roughly 2.0 percent growth in the first quarter.
Bernanke offered no clear signal that additional stimulus was in the pipeline, but said the central bank was prepared to act if conditions deteriorate.
The Dow Jones Industrial Average closed at 12,805.54, gaining 0.62 percent, more than erasing Monday's losses.
Against the yen, the dollar "is supported by expectations that the next quantitative easing (by the Fed) could boost share prices," Yamamoto said in a note to clients.
Traders' eyes are now on the minutes of the Bank of England set to be issued later Wednesday and US housing starts, among other data, he added.
Junichi Ishikawa, forex analyst at IG Markets Securities in Tokyo, said yen-buying pressure may increase if US economic indicators, including some corporate earnings results due Wednesday, show weaker than expected figures.
The Fed's Beige Book will also be in focus, he said, adding if "it shows a positive outlook on the economy like it did last month, it could further reduce expectations for additional easing and lift the dollar" against the yen.
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