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The dollar crept up on Thursday from recent lows against the yen, but gains were capped as the market awaited key US employment data due the following day.
The dollar hit a nine-day low versus the yen and a four-week trough against the euro on Wednesday on profit-taking ahead of the payroll figures, putting the brakes on a month-long rally on expectations of an early rise in US rates.
"The dollar is finding some support due to bargain hunting by Tokyo players following the holiday, but movements are limited as the focus is on tomorrow's US jobs data," said Katsunori Kitakura, manager of the treasury department at Chuo Mitsui Trust and Banking.
Japanese markets had been closed since Friday due to a string of national holidays.
The dollar was around 109.10 yen, up from 108.70 yen in late New York trade.
In early US trade on Wednesday the dollar fell to 108.33 yen, its lowest mark since April 26.
Some traders said the dollar was receiving support from sluggish share prices in Tokyo.
The euro was fetching about $1.2165, just off $1.2175 in late US trade and a four-week high of $1.2180 hit on Wednesday.
The currency market is keen to see the April payroll data for hints about when the Federal Reserve will raise interest rates.
The Fed removed a reference to being "patient" about a potential rate increase in its policy statement earlier in the week, backing market expectations for a credit tightening by the summer.
The US interest rate futures market has priced in a 50 percent chance the Fed will raise rates by 25 basis points after its June 29-30 meeting, and has fully priced in an increase by the end of August.
The consensus forecast in a Reuters poll puts the payroll increase at 173,000 versus March's surprisingly large 308,000.
However, dollar bears said a strong reading was already factored in and that it would not lead to further dollar-buying.
Sterling was around $1.7945, off a two-week high above $1.80 marked on Wednesday.

Copyright Reuters, 2004

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