Tokyo: The dollar rebounded slightly against the yen in Asian trade on Friday after tumbling from a six-year high, as investors await the release of a key US jobs report later in the day.
In Tokyo midday trading, the greenback changed hands at 108.78 yen, up from 108.42 yen.
However, it is well off the levels above 110 yen it touched in Asia Wednesday before succumbing to profit-taking and disappointing US data.
The euro was mixed at $1.2654 and 137.67 yen against $1.2667 and 137.34 yen in US trade, after European Central Bank policymakers on Thursday held off further rate cuts, but said they were committed to taking steps to combat deflation.
"Tonight`s US payrolls data will be important; a strong labour report could push the dollar back up," Yutaka Miura, senior technical analyst at Mizuho Securities told Dow Jones Newswires.
But traders were cautious with various concerns hitting sentiment, including the Federal Reserve`s plans to exit its stimulus and raise interest rates, the first US Ebola virus outbreak and unrest in Hong Kong.
"A sense of risk-off tone still prevails as markets continue to be buffeted by a combination of factors, including the ever-closer Fed normalisation, growth worries particularly regarding the eurozone and China, as well as geopolitical risks," Credit Agricole said in a note.
"The focus today will be firmly on the September payroll data," it added.
As the demonstrations in Hong Kong moved into a sixth day its chief executive refused demands to resign and held out the hope of compromise by saying the government will talk to protest leaders.
The campaign for full universal suffrage has led to the closure of some of the city`s busiest thoroughfares and comes during the Chinese Golden Week holiday when cashed-up mainlanders usually visit its numerous shopping outlets.
National Australia Bank said investors were nervous about the possible resignation of the city`s top politician Leung Chun-ying.
"The apparent fear was that if Leung announced his resignation, as demanded by...protestors, he would be replaced by an even more pro-Chinese premier and that the protests could escalate rapidly," it said.
The euro was steady after edging up following the ECB policy meeting on Thursday.
Bank chief Mario Draghi -- who pressed governments to get their finances and economies in order to steer the eurozone back to growth -- announced various programmes to inject cash into the single currency bloc`s moribund economy.
