The U.S. dollar fell slightly to the lower 159 yen zone Tuesday morning in Tokyo amid persistent concerns over a possible yen-buying intervention by Japanese authorities aimed at arresting the yen's recent decline.
At noon, the dollar fetched 159.32-33 yen compared with 159.52-62 yen in New York and 159.68-70 yen in Tokyo at 5 p.m. Monday.
The yen remained weak against the euro, having neared a record low overnight in New York.
The euro was quoted at $1.0735-0739 and 171.03-10 yen against $1.0729-0739 and 171.28-38 yen in New York and $1.0712-0714 and 171.06-10 yen in Tokyo late Monday afternoon.
The dollar came under pressure after the currency neared the 160 yen threshold the previous day, the level perceived as where Japanese authorities could intervene, dealers said.
Japan apparently conducted a yen-buying intervention after the dollar hit 160.24 yen on April 29.
"There are views that what happened two months ago may take place again," said Yuzo Sakai, chief manager of business planning at Ueda Totan Forex Ltd. "The 160 yen line is seen as a major resistance level."
Tokyo stocks rose in the morning, led by gains in auto and other export-related issues on the yen's recent weak tone. Bank shares also climbed on hopes for improved profits on the back of rising Japanese long-term interest rates, brokers said.
The 225-issue Nikkei Stock Average rose 196.74 points, or 0.51 percent, from Monday to 39,001.39. The broader Topix index was up 39.40 points, or 1.44 percent, at 2,779.59.
