LONDON, May 1: The euro retreated slightly in thin trading on Thursday having flirted with the symbolic level of 1.12 dollars briefly in its push to new four-year high points.

The dollar also sank to a one-month low against the yen a day after the Bank of Japan confirmed that it had not intervened on the foreign exchange market in April to curb the strength of the yen, the first month this year it did not act.

The single European currency stood at $1.1165 from 1.1172 late on Wednesday in New York, with action muted owing to the May Day holiday in many European markets besides London.

The euro rose to as high as 1.1198 dollars in Asian trading before pulling back, the highest level since February 1999.

The dollar was being traded at 118.80 yen from 118.95 late on Wednesday. Bear Stearns economist Steve Barrows said that the market appeared to be slightly wary of chasing the euro above the 1.12-dollar threshold.

The US unit was also under pressure against the yen, though Japan’s Golden Week holiday season meant trade volume were also fairly thin in the Asia.

Analysts said that the appreciation of the euro against the yen had alleviated much of the dollar selling pressure against the yen.

The euro was changing hands at $1.1165 from 1.1172 late on Wednesday in New York, 132.62 yen (132.89), 0.6975 pounds (0.6990) and 1.5154 Swiss francs (1.5137).

The dollar was being quoted at 118.80 yen (118.95) and 1.3571 Swiss francs (1.3534).

The pound was at $1.6016 (1.5973) and 190.09 yen (189.99).—AFP