The yen weakened and the euro recovered from a dip below 0.90 dollars Monday on currency markets that were calm due to summer vacations.
Operators were worried that a decision by the Bank of Japan to abandon the "zero interest rate" policy could compromise Japan's economic recovery, traders said.
At 2100 GMT, the euro was trading at 0.91 dollars, up from 0.90 late Friday in New York.
The single European currency was worth 99.07 yen, up from 98.07 late Friday. The dollar was trading at 109.40 yen, up from 108.57.
The euro-dollar parity went from a high of 0.9040 dollars at the start of the day to a low of 0.90 around 1430 GMT, according to Dennis Heidt of Paribas in New York.
But the movement was short-lived, and the euro clawed its way back to a peak of 0.91 dollars.
Trading was narrow due to the number of people on August vacations in Europe, according to Ian Gunner of ABN Amro.
Gunner said the euro was little in demand and could sink again to the 0.895-dollar threshold it reached last week.
Traders are watching for publication of the US consumer price index Wednesday and figures on the US foreign debt Friday.
Elsewhere, higher-than-expected industrial production prices in Britain benefited the pound sterling.
The market is watching for publication later this week of figures on British inflation, labor markets and retail sales, as well the outcome of a meeting of the Bank of England.
Some analysts are predicting the British central bank will raise interest rates once more before the end of the year.
The pound sterling was worth 1.51 dollars, up from 1.50 dollars Friday; 164.71 yen against 163.08; and 2.59 Swiss francs against 2.58.
The euro was trading at 0.6 pound sterling, virtually unchanged from 0.6013 Friday, and 1.56 Swiss francs, up from 1.55. The dollar was worth 1.72 Swiss francs, down from 1.72 Friday. — (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
