The dollar was steady against the yen Tuesday after it was dragged down in response to media reports, later denied, that US President Barack Obama had expressed concerns about the surging greenback.
In Tokyo afternoon trade, the US unit fetched 124.45 yen, against 124.47 yen in New York and 125.52 yen in Tokyo earlier Monday.
The currency, which has been on a roll in recent weeks, fell in US trading after media reported, citing an unnamed French diplomatic source, that Obama had told the G7 summit in Germany that the strong dollar "posed a problem".
The White House denied that quickly, and Obama then told reporters: "I did not say that. And I make a practice of not commenting on the daily fluctuations of the dollar or any other currency."
The dollar has been surging on hopes for a US interest rate hike this year with last week`s strong US jobs offering the latest clue on the strength of the world`s top economy.
"Much of the blame for the abrupt reversal in the dollar`s post-payrolls performance is being laid at the feet of reported comments from US President Obama," National Australia Bank (NAB) said in a commentary.
But Keisuke Hino, a foreign-exchange trader at Mizuho Bank, said the greenback`s rise was likely over for the moment.
"The dollar`s looking increasingly capped in the near term, even if it`s still a buy over the longer term," he told Bloomberg News.
The euro, after rallying on solid German trade data, strengthened to $1.1319 and 140.87 yen, from $1.1293 and 140.57 yen in the US.
However, the euro`s upside is being hampered by jitters over Greece with Athens and its creditors so far unable to reach an agreement that will unlock much needed funds for the cash-strapped country to avert a default and possible eurozone exit.
The dollar was mixed against other Asia-Pacific currencies.
It eased to Sg$1.3543 from Sg$1.3615 on Monday, to 1,120.70 South Korean won from 1,122.58 won and to 33.73 Thai baht from 33.91 baht.
The greenback also declined to 45.13 Philippine pesos from 45.15 pesos and to 63.98 Indian rupees from 64.07 rupees while it strengthened to Tw$31.12 from Tw$31.10 and to 13,380.00 Indonesian rupiah from 13,373.00 rupiah.
The Australian dollar rose to 76.89 US cents from 76.09 cents while the Chinese yuan bought 20.08 yen from 20.20 yen.
