The euro weakened in Asian trade on Tuesday after eurozone finance ministers delayed until next week a final decision on disbursing the next tranche of a bailout for debt-hit Greece.
The single currency bought $1.2680 and 100.55 yen in Tokyo trade from $1.2709 and 101.02 yen in New York late Monday.
The dollar eased to 79.30 yen from 79.49 yen, as worries about a budget deadlock in Washington hung over the greenback.
On Monday, Eurogroup head Jean-Claude Juncker said Greece had made progress on austerity targets required for rescue cash, but added that eurozone finance ministers would have to meet again on November 20 to clear the way for Athens' next aid payment.
Juncker, speaking at the end of a finance ministers meeting, said he hoped the talks would clear the way for a payment of 31 billion euros that Greece desperately needs to avoid default.
The Greek parliament has approved a deeply unpopular budget as it faces strict demands from its international creditors while a general strike saw tens of thousands taking to the streets in protest.
"The focus of the Eurogroup remains the attempt to reconcile their demands and requirements for Greece," National Australia Bank said in a note.
"While Greece has passed its austerity measures, there remain sticking points in releasing the next tranche of funding."
Those hurdles were likely to be cleared, as they have in the past, allowing Greece to meet a looming debt payment, the bank added.
Traders were also keeping an eye on a German economic sentiment report due later in the day, while dollar trade was likely to be narrow following holiday-thinned US volume on Monday and several Asian markets closed Tuesday, said a senior dealer at a major bank in Japan.
"With no significant cues coming up, I don't think the market will be moving until London trading hours," he told Dow Jones Newswires.
Traders were, however, watching for new developments on the US fiscal cliff of spending cuts and tax hikes slated to come into effect on January 1 unless a bitterly divided Congress agrees a new spending deal.
The dollar was higher against other Asia-Pacific currencies.
It rose to 54.97 Indian rupees from 54.68 rupees on Monday, to 9,650 Indonesian rupiah from 9,639 rupiah, to Tw$29.04 from Tw$28.97, to 30.69 Thai baht from 30.63 baht, and to 1,090.73 South Korean won from 1,087.85.
It also firmed to Sg$1.2237 from Sg$1.2227 and to 41.12 Philippine pesos from 41.08 pesos.
The Australian dollar fell to $1.0401 from $1.0420 while China's yuan inched down to 12.69 yen from 12.71 yen.