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Dollar rebounds from Wall Street losses

TOKYO--The dollar rose in Asian trade on Tuesday after suffering a sell-off in New York in response to unexpectedly weak U.S. manufacturing data that raised concerns about the world's number one economy.

The greenback bought 101.24 yen, up from 100.94 yen late in New York but well down from 102.31 yen in Tokyo earlier Monday. The euro was mixed at US$1.3507 and 136.75 yen, from US$1.3529 and 136.58 yen in U.S. trade.

U.S. currency markets were jolted after the Institute for Supply Management's purchasing managers index sank to 51.3 in January from 56.5 in December. A figure above 50 indicates growth and anything below points to contraction.

The latest figures throw the focus on U.S. employment figures due this week as investors look to gauge the state of the economy as the Federal Reserve winds down its stimulus, citing a firming recovery.

The Fed announcement rattled emerging markets such as India, South Africa and Russia on fears of a capital flight, which in turn sent their currencies diving. Poor China data has also dampened investors' spirits, dealers said.

The dollar has suffered selling pressure after hitting a five-year high above 105 yen earlier this year.

Improving Japanese inflation figures have supported the yen by reducing speculation of more easing measures from the Bank of Japan ahead of an April tax rise, which many fear will dent consumer spending.

The dollar was mixed against other Asia-Pacific currencies.

It fell to SG$1.2712 from SG$1.2778 on Monday, to 12,206 Indonesian rupiah from 12,249 rupiah and to 32.88 Thai baht from 32.91 baht.

The greenback strengthened to 45.42 Philippine pesos from 45.39 pesos, to 62.69 Indian rupees from 62.58 rupees and to 1,084.40 South Korean won from 1,083.32 won.

The Australian dollar rose to 88.46 U.S. cents from 87.50 cents, while the Chinese yuan bought 16.71 yen against 16.88 yen.

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