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Dollar Falls Against Yen, Euro

The dollar slipped against the euro and the yen Thursday as players sold the greenback to adjust their positions ahead of a press conference by the chief of the European Central Bank.

The U.S. dollar was trading at 114.98 yen on the Tokyo foreign exchange market at 6 am London time Thursday, down from 115.26 yen from late Wednesday in New York. The euro rose to $1.3305, from $1.3285.

U.S. hedge funds, securities firms and Japanese banks used the Tokyo session to make minor changes in their dollar holdings amid a lack of fresh market-moving news, traders said.

Japanese exporters selling dollars also contributed to the dollar's fall against the yen.

Traders said they were ready to buy the euro further if European Central Bank President Jean-Claude Trichet gives a tip-off on when to expect the bank's first tightening of interest rates next year at his post-policy meeting press conference later Thursday.

Players were also keeping an eye on the Bank of Japan, trying to figure out when it will raise rates again.

Traders were divided on the possibility of a rate hike this month. But even if the BOJ postpones raising rates to 0.5 percent from 0.25 percent until January, it still makes sense to continue selling the yen, some traders said.

"The BOJ may have to wait until July to hike rates to 0.75 percent," said Toru Tanaka, senior foreign exchange manager at Mitsubishi Corp. "That means players can enjoy huge interest rate differentials between Japan and its counterparts at least for a half year."