The euro weakened in Asian trade Wednesday after enjoying recent gains that were largely driven by speculation over US and European monetary easing.
The single currency bought $1.2392 and 97.30 yen in Tokyo afternoon trade, compared with $1.2401 and 97.37 yen in New York late Tuesday.
The dollar changed hands at 78.53 yen against 78.59 yen, with few trading cues to drive forex markets.
"The snoozefest continues," National Bank of Australia said in a note, adding that "risk sentiment remains positive overall, keeping the US dollar under downward pressure".
Markets were largely being driven by growing expectations that policymakers in the US and Europe will usher in further easing measures to boost their respective economies.
That was reinforced by comments from Federal Reserve Bank of Boston president Eric Rosengren on Tuesday that the US central bank should launch an aggressive bond-buying programme to boost the world's biggest economy.
Rosengren is a member of the Fed's policy-setting committee.
The Bank of Japan, meanwhile, started a two-day policy meeting from Wednesday, as Tokyo has voiced concerns about the high value of the yen and hinted at another round of currency intervention to tame the unit's value.
Markets were also looking to an unfolding political drama in Japan over a plan to double the nation's consumption tax to chip away at its massive public debt.
The dollar may get a boost if the opposition Liberal Democratic Party (LDP), which previously agreed to support Prime Minister Yoshihiko Noda's unpopular tax bill, make good on a bid to stall its passage in the upper house of parliament, dealers said.
The dollar was mixed against other Asia-Pacific currencies.
It fell to 55.04 Indian rupees from 55.44 rupees on Tuesday, while holding steady at 41.79 Philippine pesos.
The greenback firmed to Sg$1.2439 from Sg$1.2414, to Tw$29.96 from Tw$29.94 and to 1,127.55 South Korean won from 1,127.30 won.
It also gained to 31.52 Thai baht from 31.47 baht and to 9,471.00 Indonesian rupiah from 9,460.00 rupiah.
The Australian dollar eased to $1.0546 from $1.0580 while the Chinese yuan bought 12.30 yen against 12.27 yen.
-- Dow Jones Newswires contributed to this article --