Summary The euro also slipped to 141.26 yen from 141.48 yen, while it edged up to $1.3762 from $1.3760.
TOKYO (AFP) - The dollar slipped in Asian afternoon trading on Wednesday as investors locked in profits after a strong rally in the unit ahead of next week's Federal Reserve meeting.
The greenback weakened to 102.63 yen in Tokyo, from 102.81 yen in New York and above the 130-yen level in Asia Tuesday.
The euro also slipped to 141.26 yen from 141.48 yen, while it edged up to $1.3762 from $1.3760.
"After the greenback's rapid gains against the yen over the last month, it's natural that some position adjustments kick in," said Kengo Suzuki, forex strategist at Mizuho Securities.
The unit won some support from a deal on US spending that aims to avoid a repeat of a government shutdown.
Under an agreement reached in October that ended a crippling 16-day shutdown, federal spending authority expires on January 15, when a new deal will need to be in force.
The two-year agreement reached on Tuesday sets the warring Democratic and Republican Parties on track for further cooperation on fiscal policy, ending the cycle of budget feuding that has marred Washington since 2011.
The challenge now is selling the agreement to sceptical conservatives and liberals in the Senate and House of Representatives.
The deal may boost expectations that the Federal Reserve will start scaling back its monetary easing programme after its policy meeting next week -- a plus for the dollar.
"The agreement could raise speculation that obstacles for the Fed to begin tapering have been removed, although so far we haven't seen the market respond with dollar-buying," Suzuki told Dow Jones Newswires.
Investors are also keeping a close eye on US November retail sales data Thursday as a gauge for timing the Fed tapering. The central bank has said it would start drawing down on the scheme once the world's biggest economy was on a firm footing.
Despite slipping Wednesday, the euro has been notching up gains after the European Central Bank last week held off any new interest rate cuts despite prolonged low inflation. That followed the ECB's surprise cut last month of its central refinancing rate by a quarter-point to counter the threat of deflation.
"The euro has been supported on the back of better-than-expected growth data as well as ECB members still not making a clearer case for additional policy action to be on the cards," Credit Agricole said.
On Wednesday, EU finance ministers agreed to meet again next week to finalise details of a "Banking Union" meant to prevent failing lenders from ever again wrecking the economy.
Following more than 14 hours of talks, the ministers cited some progress but not enough, with agreement only on the general principles on one of the bloc's most ambitious projects.
The dollar was mixed against other Asia-Pacific currencies.
It weakened to 32.02 Thai baht from 32.10 baht the previous day, to 11,985 Indonesian rupiah from 11,990 rupiah, and to 44.27 Philippines pesos from 44.29 pesos.
The greenback was flat at 1,052.60 South Korean won, Sg$1.2494 and Tw$29.55, while it strengthened to 61.36 Indian rupees from 61.22 rupees.
The Australian dollar firmed to 91.35 US cents from 91.07 US cents, while the Chinese yuan bought 16.92 yen against 17.01 yen.
