Dollar falls against yen in Asia

TOKYO: The dollar skidded lower against the yen in Asian trade Wednesday despite the increasing likelihood of a tapering of US stimulus in the coming months.

The dollar fetched 97.10 yen in Tokyo afternoon trade against 97.76 yen in New York Tuesday afternoon and the 98-yen range in Tokyo Tuesday, trading around the lowest level since late June.

The euro, meanwhile, fetched $1.3303 against $1.3306 and 129.30 yen from 130.10 yen in US trade.

Investors flocked to the safe-haven yen as risk sentiment retreated amid growing indications that the Federal Reserve will soon begin tapering its $85 billion-a-month quantitative easing programme, which has been credited with boosting global equity markets.

While a draw down on the stimulus would usually be seen as positive for the greenback -- shrinking the number of dollars in the financial system and thereby boosting demand -- markets have been nervous about the implications of the Fed's expected moves.

US trade numbers from the Commerce Department showed a narrowing trade deficit in June, which analysts said points to a likely upward revision to economic growth estimates.