Dollar rebounds in Asia as investors await Bernanke

TOKYO: The dollar turned higher against the yen in Asia on Tuesday as investors waited for testimony by the US central bank chief and the outcome of a policy meeting of the Japanese central bank.

The dollar was changing hands at 102.52 yen in Tokyo afternoon trade, up from 102.26 yen in New York late Monday.

The euro rose to 132.11 yen from 131.76 yen in New York while edging upward to $1.2886 from $1.2884.

The dollar had weakened in early trade but rebounded after investors confirmed a good amount of dollar buying orders from Japanese traders, said a senior dealer at a major bank in Tokyo.

"The downside seems firm so we're reversing the course," the dealer said.

As the dollar bounced back, Tokyo share prices narrowed early losses to around the break-even point.

A strong yen is bad for Japanese exporters as it makes their products less competitive abroad and reduces income when repatriated. On the other hand a weak yen increases import costs, squeezing pockets and ramping up fuel prices in the resource-poor country.