The euro bought $1.3015 and 100.20 yen in early Asian trade, easing from $1.3027 and 100.31 yen in New York late Monday. The dollar was at 77.00 yen, almost flat from 76.99 yen.

The euro was well supported against the greenback overnight amid reported progress in Greek debt talks and traders continuing to cover short positions in the European currency.

But investors remained cautious about the outlook of the European debt crisis.

"Sentiment hasn't changed, but there is some buyback demand," a senior dealer at a major Japanese trust bank told Dow Jones Newswires.

"Other than that, the euro is still a 'sell'," he added.

Many Japanese exporters wanted to see further gains in the euro before selling the single currency, another senior dealer at a major Japanese bank said.

Market players looked to new developments in the rescue plan for Athens, which is still struggling after a 110 billion euro bailout in 2010.

A debt writedown deal with Greece's private creditors is a precondition for Greece to receive a second rescue, this time of 130 billion euros ($170 billion), from its eurozone partners.

Eurozone finance ministers pressed Greece early Tuesday to prepare new budget cuts soon and conclude negotiations on the writedown with private banks within days to avoid a messy default.