The dollar fell against the yen Wednesday in Asia after an overnight report showed that U.S. consumer confidence has hit a five-year low, stirring further fears of a recession there.
The dollar was trading at 99.96 yen in afternoon trading, down from 101.01 yen late Tuesday in New York. The euro fell to US$1.5623 from US$1.5647.
The Conference Board's index of consumer sentiment in the U.S. has been weakening since July. It is closely watched to determine the future of consumer spending, perhaps the most critical part of the American economy.
Traders warned that the dollar could fall further, to 99 yen, if other U.S. indicators due later in the day on demand for new houses and durable goods are weak.
"Concerns over the U.S. economy haven't dissipated," said Seiichiro Muta, director of foreign exchange at UBS.
U.S. durable goods orders likely rose 0.8 percent from a month earlier in February, after a 5.1 percent drop the previous month, according to economists polled by Dow Jones Newswires.
U.S. new home sales data for February are also due out later in the global day and will probably show a 2.2 percent on-month decline, according to economists.
"It's hard for the dollar to rise, either against the yen or the euro, because the broad outlook for the U.S. economy hasn't improved," Osao Iizuka, head of foreign exchange trading in Tokyo at Sumitomo Trust & Banking Co.
Against other regional currencies, the dollar rose to 9,194 Indonesian rupiah from 9,185, and to 984.7 South Korean won from 976.2.(**)
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