The dollar was at 98.29 yen in Tokyo afternoon trade, down from 98.51 yen in New York Monday afternoon.

The euro bought $1.3373 and 131.45 yen compared with $1.3369 and 131.68 yen.

The greenback lost ground in the wake of a decline in Tokyo stocks and due to concerns over a possible US military strike against Syria, said a dealer at a Japanese bank.

"The possibility of the US military attacks could make investors risk averse, weighing on the dollar," he told Dow Jones Newswires.

US Secretary of State John Kerry gave the most explicit warning yet to Damascus that the US would take action over the chemical weapons attack, which he labelled a "moral obscenity".

Speaking amid reports that Washington and its allies are preparing to launch a punitive cruise missile strike on Syrian targets, Kerry accused Bashar al-Assad's regime of engaging in a cover-up.