The dollar hovered at three-month lows against the yen on Wednesday and looked poised to lose ground for a fifth straight day, pressured by the Federal Reserve's pledge last week that it would keep interest rates near zero at least until late 2014.
The dollar revisited 76.14 yen, a three-month low it hit the previous day, pushed lower by selling from Japanese exporters and model funds although bargain-hunting by Tokyo margin players lent support, traders said.
"The Fed's decision is being slowly priced in the market, and it seems the dollar may stay pressured around the current levels at least until Friday's US jobs data," said Koji Fukaya, chief currency analyst at Credit Suisse in Tokyo.
The dollar's recent weakness has kept traders on their toes as the greenback is now within shouting distance of its record low of 75.311 yen plumbed on October 31 when Tokyo stepped into the market with massive yen-selling intervention.
"We may see the dollar go another leg lower on hopes for QE3 if the US jobs data comes in well below forecasts, but longer term I think Japan's tough fiscal situation will dampen investor demand for the yen," said Fukaya.
The euro dipped 0.2 percent to $1.3056 on selling from model funds, extending overnight losses in which month-end selling stemming from portfolio-rebalancing eradicated days of hard-won gains.
The dollar index was almost unchanged at 79.54 while markets were closely watching for any moves from the Swiss National Bank as the euro traded near to the 1.20 franc floor in euro/Swiss.
The euro was last at 1.2046 francs, just above 1.2025 struck overnight, its lowest since the SNB set the floor in September.
China's official Purchasing Managers' Index showed the manufacturing sector expanded modestly in January, with the index inching up to 50.5 from 50.3 in December, above a forecast of 49.5. The data failed to give a fillip to the Australian dollar which fell 0.2 percent to $1.0591.
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