Dollar down against yen

TOKYO: The dollar edged down against the yen Thursday after hitting five-year highs in New York in response to the US Federal Reserve´s decision cut back its stimulus programme next month, citing a pick-up in the economy.

Emerging market currencies fell having previously enjoyed healthy rallies on the back of the stimulus as traders took advantage of Fed´s cheap rates to seek out better returns.

In early afternoon trade the greenback eased to 104.00 yen in Tokyo from 104.20 yen late in New York, where it peaked at 104.36 yen -- its highest since early October 2008 -- but still well up from levels just below 103 yen in Tokyo Wednesday.

The US unit was a tad higher against the euro. The single currency bought $1.3656 Thursday, against $1.3680 in New York, and much stronger than the $1.3770 mark in Tokyo Wednesday. The euro was also at 142.51 yen compared with 142.56 yen.

The Australian dollar fell to 88.21 US cents at one stage Thursday -- its lowest level against the greenback since August 2010 -- and in the late morning it edged up slightly to 88.27 cents.