Tokyo: The dollar struggled Monday as US economic growth and Chinese manufacturing figures disappointed markets, while the euro picked up after falling on fears about the new Greek government`s testy talks with international creditors.
In Tokyo afternoon trade, the dollar edged up to 117.76 yen, from 117.59 yen in New York but it was still down from 118.34 yen on Thursday.
The euro rose to $1.1312 from $1.1284, and to 133.22 yen from 132.70 yen in US trade.
The US Commerce Department said Friday that the world`s top economy expanded at an annual rate of 2.6 percent in the fourth quarter, well below the 5.0 percent in the previous three months.
The disappointment was compounded by news that prices in the eurozone fell by a record 0.6 percent in January, fanning concerns that the currency bloc is facing years of deflation.
Traders were also reacting Monday to news that China`s official purchasing managers index (PMI) of manufacturing activity unexpectedly retreated last month for the first time in more than two years.
Data Sunday showed its PMI at 49.8 last month, against 50.1 in December. Anything below 50 points to contraction and anything above indicates growth.
"Market sentiment is turning risk-averse after both the US growth figures and the Chinese manufacturing data fell short of estimates," Atsushi Hirano, head of FX sales in Japan at Royal Bank of Scotland, told Bloomberg News.
"There`s a growing risk the yen could climb to the mid-115 level versus the dollar by the middle of this week."
Traders tend to move into the yen during times of uncertainty or turmoil.
The euro had earlier faced selling pressure after Greece`s new anti-austerity Finance Minister Yanis Varoufakis said despite warnings that Athens would shortly run out of money, the far-left Syriza-led government preferred to do without fresh cash, and instead renegotiate its entire bailout.
At a strained press conference with Eurogroup chief Jeroen Dijsselbloem, Varoufakis said Greece was willing to negotiate with its lenders but not with an international troika of creditors -- the European Union, the European Central Bank and the International Monetary Fund.
Athens has been promised 7.2 billion euros in funds from the troika if it completes specified reforms by February 28.
