Tokyo, July 7: The dollar slipped to a near one-month low against the yen in late Tokyo trade , dealers said. The greenback fell as low as 112.05 yen as of 07:45 GMT. It stood at 114.19 yen in early morning trade.

"Although the dollar recovered slightly in afternoon Tokyo, European operators were actively selling dollars against the mark and the yen when they entered the market," said a dealer at a European bank in Tokyo.

Stop-loss dollar sales were triggered at 1.7450 marks, which propelled the dollar down against the yen.

Dealers said a further slide by the dollar was highly likely due to Japan's rising trade surplus. The focus is on whether the Japanese monetary authorities will talk up the dollar when it falls towards 110 yen, they said.

In late London trade on Friday the dollar was at around 113.61/66 yen and 1.7535/40 marks. US markets were closed on Friday for the Independence Day holiday. The dollar is expected to consolidate against mark above 1.74 marks after stumbling lower on the coat-tails of dollar/yen's skid to four-week lows, said analysts.

With dollar/mark slicing through initial support at 1.7460/70 marks, the lows from Thursday and Friday, the pair is now vulnerable to losses towards 1.74 marks, said chartists.

Alan Dunne, technical analyst at Bank of America, said a slip through the 1.7460-mark level clears the way for a test of the key 1.74/1.7390 marks, previously stiff resistance for dollar/mark on the way up.

"It is quite a good support area and I expect that to hold,"said Dunne.At 07:10 GMT, dollar/mark was trading at 1.7447/52 against1.7574/70 marks in late Europe on Friday.

Dunne, however, said a break below staunch support at 1.74 marks could pave the way for a test of 1.7290 marks.

"For choice, I would expect 1.74 marks to hold," he added. Dollar/yen, hovering at four-week lows around 112.08 yen, is shaky on the charts and analysts are betting the pair will slide below the 112-yen figure. A probe below 112.00 yen should be cushioned around 111.80/85 yen.

At 08:30 GMT dollar/yen was trading at 112.17 against 113.77/87 in late Europe on Friday. Chartists said session lows around 111.98 yen hit on Monday and the base of a flag formation around 111.80 should provide support.The area around 111.85 is also a key support area because it marks the lows from May 20.

"Dollar/yen's move below 113 leaves a bearish tone and look to sell upticks to 113 for a test of 112. Below there sets up 110.60," said Bank of America's Dunne.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.