Dollar softens in Asia

TOKYO: The dollar retreated Monday morning as investor spirits were deflated by weaker-than-expected Japanese growth data, with markets now looking to key US economic figures this week.

In morning Tokyo trading, the greenback stood at 96.05 yen, softening from 96.24 yen in New York Friday.

The euro bought $1.3336 and 128.28 yen, nearly flat from $1.3338 and 128.35 in US markets.

Traders sold the dollar after Tokyo said the world's third-largest economy grew by 0.6 percent in the April-June period from the previous quarter, slower than a revised 0.9 percent increase between January and March. The latest figures missed analyst expectations of 0.9 percent growth in the quarter.

The weaker-than-expected figures raised speculation that the government may hold off a series of sales tax hikes aimed at doubling the rate to 10 percent by 2015.

The move is widely seen as critical to efforts to bring down Japan's eye-watering national debt, the worst in the industrialised world at more than twice the size of the economy.

After the GDP figures were released, the dollar slumped to 95.92 yen before regaining some ground.