LONDON, March 1: The dollar remained pressured against the yen on Tuesday after the latest batch of Japanese data provided further evidence of a recovery for the world's second largest economy, analysts said.

The euro eased to $1.3206 from 1.3220 late on Monday in New York. The dollar stood at 104.38 yen from 104.60 on Monday. The dollar has failed to hold on to gains against the yen after further evidence from Japan that the economy has turned a corner, Bank of Tokyo-Mitsubishi economist Derek Halpenny said.

The failure of the dollar to strengthen against the yen in circumstances of gains against the euro has put downward pressure on the euro/yen rate, he added. Data showing Japanese unemployment at a six-year low and a strong bounce in household spending and incomes gave another boost to the case that the Japanese economy was on the mend after last year's mild recession.

The January unemployment rate was slightly above economist forecasts for 4.4 per cent but was still the lowest level since January 1999. The data came a day after Japan posted a stronger-than-expected 2.1-per cent rise in January industrial output.

The Japanese government reported also Monday that retail sales in January rose at the fastest pace in more than six years and that housing starts increased at twice the expected rate.

Elsewhere, markets were gearing up for Friday's release of a key US employment report for February, while the markets' reaction to the data would be critical for the dollar's short-term prospects, according to analysts.

The euro was changing hands at $1.3206 against 1.3220 late on Monday in New York, 137.81 yen (138.40), 0.6873 pounds (0.6885) and 1.5358 Swiss francs (1.5375). The dollar stood at 104.38 yen (104.60) and 1.1630 Swiss francs (1.1625).

The pound was at $1.9217 (1.9207), 200.57 yen (200.91) and 2.2352 Swiss francs (2.2339). On the London Bullion Market, the price of an ounce of gold stood at $434.52 against $435.45 late on Monday. -AFP