TOKYO: The dollar weakened on the yen and euro in Asia Thursday after getting a boost from upbeat US housing figures, while the European single currency was mixed following a rare piece of good news for the eurozone economy.
In afternoon Tokyo trading, the greenback slipped to 99.87 yen from 100.26 yen in New York late Wednesday, while the euro eased to 132.13 yen from 132.34 yen.
The single currency slightly rose to $1.3213 from $1.3199 yen.
Driving the dollar's gains on Wednesday was a government report of an unexpectedly strong surge in sales of US new homes in June, which hit their fastest pace in five years.
The encouraging numbers revived speculation the Federal Reserve will begin to unwind its $85 billion-a-month bond-purchase programme soon.
That would mean fewer dollars sloshing around in the financial system, lifting demand and in turn sending the currency higher.
However, the greenback came under pressure on Thursday as Japanese exporters sold the unit, while the yen's gains come after Japan formally joined negotiations for a US-led trans-Pacific agreement this week.
Japan's participation has raised hopes for a free trade deal that would cover nearly 40 percent of the global economy.
"Japan joining the TPP (Trans-Pacific Partnership) is very important for Japan's relations with the US," Osamu Takashima, head of G10 forex strategy at Citigroup, told Dow Jones Newswires.
"Meanwhile, there is persistently strong opposition from US businesses against Japan's participation. A yen's further weakening won't be welcomed politically while TPP negotiations are going on."
The euro won a measure of support from news that private business across the eurozone returned to growth in July for the first time in 18 months, possibly signalling an end to recession.
The Markit Eurozone Composite Purchasing Managers Index registered 50.4 points this month, above the 50-mark signalling growth, and a bigger-than-expected rise, after coming in at 48.7 in June.
The dollar was broadly stronger against other Asia-Pacific currencies.
The greenback rose to 1,117.10 South Korean won from 1,113.95 won the previous day, to Sg$1.2667 from Sg$1.2649, to 31.07 Thai baht from 30.93 baht, to 43.34 Philippine pesos from 43.23 pesos, to 10,295 Indonesian rupiah from 10,255 rupiah and to Tw$29.96 from Tw$29.91.
It weakened to 58.92 Indian rupees from 59.42 rupees.
The Australian dollar fell to 91.63 US cents from 92.62 cents while the Chinese yuan changed hands at 16.29 yen against 16.27 yen.
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