The dollar edged up from a six-week low against the yen today as Japanese investors stepped in to buy after its slide late last week.
The dollar also staged a slight rebound in Asia trade after some traders were disappointed the weak payrolls report did not spark a deeper retreat in the US currency, prompting them to reverse short positions.
The yen slipped even as Asian stock markets extended their slide on worries about the US economic outlook, partly from Japanese importers buying dollars for their commodity needs and from Japanese investors seeking higher yields, traders said.
Yet traders said a further sell-off in stock markets would likely spur more unwinding of carry trades in which the low-yielding yen is used as a cheap source of funds to buy higher-yielding currencies and riskier assets like equities.
The dollar edged up 0.3 per cent from US Friday trade to 108.90 yen clawing up from a six-week low of 107.90 yen struck on Friday.
The euro dipped 0.1 per cent to $1.4728 after reaching a five-week high of $1.4825 on Friday, not far from the record peak of $1.4968 struck in November.
The single European currency gained 0.2 per cent to 160.35 yen but was also near a six-week trough struck last week.