Dollar slips versus yen

The dollar slipped against the yen on Tuesday, keeping a weak tone for a second session as cautious investors trimmed some exposure to high-yielding currencies ahead of US retail sales figures due out later in the session.
Concerns that a rising number of defaults in the US subprime mortgage sector could hurt the broader economy spurred selling of the dollar against the yen, erasing some gains after last week's upbeat US jobs data.
The dollar eased to around 117.40 yen nearing an overnight low at 117.22 yen after recovering to around 117.80 on Japanese importers' demand for dollars earlier in the session.
The currency fell to a three-month low of 115.16 yen last week. The pound and New Zealand dollar dropped against the yen on Monday as investors cut back on carry trades, in which low-yielding currencies like the yen are used, as a cheap source of funds to buy higher-yielding currencies.
The yen had surged in late February and earlier this month as a sharp sell-off in global equity markets prompted investors to slash their risky carry trades. But the Japanese currency quickly gave back those gains as stock markets rebounded, easing worries about a prolonged bout of investors avoiding riskier assets.
Sterling stayed vulnerable against the yen after recovering some losses to 226.60 yen as traders took profits on a drop to 225.87 yen on Monday. The euro was down against the yen at 154.69 yen after recovering to 155.30 yen earlier in Tokyo trade. The single currency kept a firm tone against the dollar to trade at $1.3185 near an overnight high around $1.3200.
The New Zealand dollar held firm at $0.6950 after January's retail sales rose more than expected, having stayed above $0.6945 before the data. But broad weakness in higher-yielding currencies limited gains against the dollar and the yen.
Concerns about the subprime mortgage industry, which serves borrowers with poor credit histories at high interest rates, have dampened investor appetite for risk.
The riskiest segment of the US lending market has seen rising default rates in recent months, pushing companies such as New Century Financial, the largest independent US subprime mortgage lender, closer to bankruptcy.
Investors are anxious to see how falling prices and slower sales in the housing market may affect the overall economy, as US consumption has been driven by a housing boom.