At noon, the dollar fetched 89.06-10 yen versus 89.00-10 yen in New York and 89.56-57 yen in Tokyo at 5 p.m. Monday.

The euro traded at $1.4953-4957 and 133.15-29 yen against $1.4964- 4974 and 133.27-37 yen in New York and $1.4983-4984 and 134.19-23 yen in Tokyo late Monday.

Inheriting bearishness from New York overnight, the dollar remained sluggish in Tokyo after Federal Reserve Chairman Ben Bernanke suggested in a speech Monday that the Fed would maintain its ultra- easy credit policy for the time being.

At one point in New York on Monday, the dollar fell to 88.75 yen, its lowest level there since early October, in response to the Fed chief's credit policy comments.

Though Bernanke rarely touched on the dollar in his speech, saying that the Fed's policy to "foster both maximum employment and price stability" and the underlying strength of the U.S. economy "will help ensure that the dollar is strong," his remarks provided limited support for the dollar, analysts said.

"His remarks were perceived as lacking seriousness because the market believes his true intention is that as long as U.S. long-term interest rates remain low and the weaker its currency becomes, it will benefit its exports," said Yuki Sakasai, foreign exchange strategist at Barclays Bank.

Expectations about low U.S. interest rates coupled with moves to narrow global imbalances, notably large U.S. trade and current-account deficits, are contributing to the dollar's weakness, analysts said.

A further depreciation of the dollar was limited in Tokyo ahead of the outcome of a meeting of U.S. President Barack Obama and Chinese President Hu Jintao.

The market is focused on whether there will be any comments on currencies from the two leaders, analysts said.