US dollar softens but fresh rises tipped

Tokyo

THE US dollar edged down against the yen on Tuesday following a dip in New York, although analysts expect further advances for the greenback as monetary policy in Japan and the United States diverges.

The US dollar bought 120.18 yen in Tokyo on Tuesday, compared to 120.78 in US trade on Monday. The euro was at US$1.2305 and 147.98 yen against US$1.2308 and 148.65 yen. The US dollar eased as Tokyo and Asian shares retreated on profit-taking, somewhat raising investor aversion to risk.