The dollar was weaker above ¥110.10 in late Tuesday trading in Tokyo, after recouping some of its early losses thanks to a rebound in Japan's 225-issue Nikkei average and firm Chinese equities.
At 5 p.m., the dollar stood at ¥110.15, down from ¥110.61 at the same time Monday. The euro was at $1.1514, up from $1.1420, and at ¥126.84, up from ¥126.32.
The dollar fell below ¥110 for the first time in about two months in the early morning after U.S. President Donald Trump's remarks Monday criticizing the Federal Reserve for raising interest rates.
After losing further ground to around ¥109.78 in midmorning trading, the greenback rebounded above ¥110 later, backed by dollar-buying by Japanese importers.
The dollar moved in a narrow range around ¥110.10 in the afternoon.
The dollar attracted buying in the afternoon, "supported by the Nikkei average's upturn to positive territory and brisk Chinese stocks, as well as spillover effects from the euro's rise against the yen," a currency broker said.
But the dollar "lacked strength to continue going up strongly," weighed down by the remarks of Trump, the broker also said.
A bank-affiliated securities firm official said the Trump remarks prevented emerging-market currencies from losing ground and pushed up Shanghai stocks, easing a risk-averse mood in the market.
On the other hand, traders boosted euro-buying in a positive reaction to an excessive fall in the euro following a plunge in the Turkish lira, the currency broker said.
Market attention is focused on subcabinet-level U.S.-China trade talks that will be reportedly held in the United States from Wednesday, an official of a Japanese brokerage firm said.
Traders are also paying attention to Fed Chairman Jerome Powell's planned speech Friday in Jackson Hole, Wyoming, to see whether he drops any hints on future monetary policy after the Trump remarks criticizing rate hikes.