TOKYO: The dollar skidded lower against other major currencies in Asian trade Wednesday as investors fretted about a possible tapering of US stimulus in the coming months.
The dollar fetched 97.33 yen in Tokyo midday trade against 97.76 yen in New York Tuesday afternoon and the 98-yen range in Tokyo Tuesday.
The greenback briefly fell to 97.09 yen, the lowest level since late June.
The euro slipped to $1.3294 from $1.3306 and to 129.42 yen from 130.10 yen.
The dollar was down on growing indications that the Federal Reserve will soon begin winding up its $85 billion a month quantitative easing programme.
US trade numbers from the Commerce Department showed a narrowing trade deficit in June, which analysts said points to a likely upward revision to the growth estimate for the quarter, and firm growth in the current quarter.
The chiefs of the Federal Reserve's Chicago and Atlanta branches both said that the Fed could begin tapering the stimulus programme in September, but stressed that economic growth needed to hold steady or improve.
National Australia Bank (NAB) said "the 'dog days of summer' looks to be an apt description of northern hemisphere overnight markets, where we have not seen much reaction to some quite significant incoming news".
"The US news has failed to move bond markets much," which could be a sign that September tapering is discounted, it said in a note.
The Bank of Japan is holding a two-day policy meeting from Wednesday with analysts expecting the bank to hold off fresh easing measures.
The Australian dollar bought 89.60 US cents compared with 89.23 cents immediately before the central bank on Tuesday cut interest rates to a record low of 2.5 percent.
NAB said there were "mixed interpretations of the lack of explicit reference to a continuing easing bias" in a post-rate cut statement, arguing further easing action could depend on incoming data.
"One thing of which there was no doubt yesterday is that the RBA (Reserve Bank of Australia) would welcome further AUD depreciation," it said.
"Should the currency not weaken further, this in itself adds to the case for further rate cuts," it said.
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