Dollar up

The yen edged up against the euro and sterling on Tuesday, as traders fretted that optimism about the global economy's recovery prospects and a risk asset rally in the past few months may have been overdone. The dollar was steady after hitting a five-week low against the yen on Monday in the wake of last week's bleak US employment data.
"The market environment now is one of investors reducing risk betting but it has not fully returned to risk aversion. It's still in a phase of correcting excessive optimism over the economy recovery seen previously," said Akira Takeuchi, a manager at Chuo Mitsui Trust and Banking.
"The US has had a mixture of positive and negative economic data, which needs to be examined closely. But the market is now prone to react to weak figures," he said. The yen has gained sharply against the euro, sterling and the Australian dollar in the past few sessions, hitting its highest in five weeks against the pound on Monday at 152.98 yen and a two-week high at 131.73 per euro.
The yen crosses have fallen since early June, after rallying from January to multi-month highs, as the sentiment about global recovery prospects that had driven them up has deteriorated. The Australian dollar has fallen about 5.5 percent from an eight-month peak at 80.43 yen hit in June and the euro has shed more than 4 percent.
Sterling dipped 0.1 percent to 155.05 yen compared with late US trading on Monday, and the euro fell 0.1 percent to 133.20 yen. But the Australian dollar edged up against the dollar and the yen.
Australia's central bank left its key cash rate at a record low of 3.0 percent on Tuesday in a widely expected decision, and left the door open to further easing if an anticipated recovery fails to materialise. The Australian dollar dipped initially after the RBA decision, but that decline proved short-lived, and it later rose to its intraday highs. The Aussie rose 0.2 percent to $0.7975 and was 0.2 percent higher against the yen at 76.02 yen.
The dollar was little changed at 95.33 yen from late US trade on Monday, when it hit a five-week low of 94.66 yen on trading platform EBS. The greenback has also been in a correction phase after hitting a six-month high against the yen at 101.45 yen in April but has been stuck in a broad range of roughly 93.50-100.00 yen since then.