By Hiroyuki Kachi 
 

The dollar was lower against the yen in Asia trade Tuesday, with investors remaining hesitant to make major moves ahead of U.S. economic data and a European Central Bank policy meeting later in the week.

As of 0450 GMT, the dollar was at Y109.32 from Y109.50 late Monday in New York after hitting Y109.51. The euro was at $1.2692 from $1.2685.

The currency market processed the last flows related to the settlement of commercial transactions by Japanese companies at the end of the fiscal first half earlier in the session.

For the rest of the day market participants look set to wait in the wings ahead of the ECB meeting and U.S. manufacturing and jobs data later in the week. Market participants shrugged off disappointing Japanese economic data such as industrial production release in the morning as lacking in relative importance.

A move by the dollar to toward the Y110 threshold will have to wait until later this week, as investors will find it "difficult to make major, positive moves" ahead of the U.S. data, said Mizuho Securities chief FX strategist Kengo Suzuki.

"While Y110 seems close, the path there is still distant," Mr. Suzuki said.

Still, with the greenback staying above Y109 despite weakness in Japanese stocks and global markets overnight, "the dollar is showing resilience," said IG Securities market analyst Junichi Ishikawa. The Nikkei Stock Average was down about 1.1% in the afternoon session after the retreats on Wall Street and in Europe overnight.

The greenback's static position during Asia trading hours Tuesday suggests an uptick in the U.S. stock market is another "prerequisite for the dollar to challenge Y110," together with gains in U.S. bond yields, Mr. Ishikawa said.

The euro was at Y138.77, compared with Y138.92.

The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was down 0.15% at 77.65.

 
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT 
 
                         Latest         Previous  %Chg    Daily     Daily  %Chg 
                                        2150 GMT           High     Low    12/31 
Dollar Rates 
USD/JPY Japan           109.30-32      109.47-51  -0.17   109.53   109.20  +3.80 
EUR/USD Euro            1.2691-94      1.2685-88  +0.05   1.2701   1.2682  -7.65 
GBP/USD U.K.            1.6260-64      1.6239-45  +0.12   1.6267   1.6226  -1.78 
USD/CHF Switzerland     0.9508-10      0.9511-15  -0.04   0.9517   0.9502  +6.48 
USD/CAD Canada          1.1140-42      1.1161-66  -0.20   1.1166   1.1140  +4.89 
AUD/USD Australia       0.8761-62      0.8717-20  +0.50   0.8767   0.8695  -1.72 
NZD/USD New Zealand     0.7812-14      0.7762-67  +0.63   0.7824   0.7746  -4.96 
 
Euro Rate 
EUR/JPY Japan           138.72-76      138.89-92  -0.12   138.93   138.68  -4.14 
Source: ICAP PLC 
 

Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com