* Dlr/yen slips on profit-taking but up from intraday lows
* Japan finmin Aso says Japan will buy ESM bonds
* Euro/yen surges after Aso's comments
SINGAPORE, Jan 8 The euro held steady against
the yen on Tuesday, having bounced from earlier lows after
Japanese Finance Minister Taro Aso said Japan will buy bonds
issued by the euro zone's ESM bailout fund.
The euro quickly jumped from around 114.60 yen to an
intraday high of 115.25 yen after Aso said Japan will
purchase ESM bonds to help stabilise Europe.
The euro last stood at 115.13 yen, steady from late U.S.
trade on Monday.
The dollar fell against the yen as investors booked profits
in the wake of the greenback's rally to a 2-1/2 year high versus
the Japanese currency last week.
The dollar shed 0.1 percent to 87.67 yen. It fell to
as low as 87.23 yen earlier, pulling away from Friday's peak of
88.48 yen on trading platform EBS, the dollar's strongest level
against the yen since July 2010.
Traders and analysts said the dollar had been due for a
pullback against the yen.
The dollar had leapt nearly 12 percent in about two months,
due to expectations that the new government elected in December
would persuade the Bank of Japan to adopt a more forceful
monetary stimulus approach.
"I think the market will now try to find what the dollar's
range against the yen will be, for example whether we are in for
a 83-88 range or 85-90," said Satoshi Okagawa, senior global
markets analyst for Sumitomo Mitsui Banking Corporation.