TOKYO, May 19, 2009 (AFP) - The dollar was little changed in Asian trade on Tuesday as risk aversion eased and traders weighed signs that Japan is concerned about the recent volatility of its currency.

The dollar was at 96.40 yen in Tokyo afternoon trade, against 96.32 in New York late on Monday. The euro edged up to 1.3564 dollars from 1.3558 and to 130.82 yen from 130.60.

The yen started the week on a firm footing as investors exited risky assets in Asian trade because of jitters about the health of the global economy.

But the currency lost ground after Vice Finance Minister Kazuyuki Sugimoto said late Monday that excessive market volatility was undesirable. A stronger yen is bad news for Japan's struggling exporters.

The comments triggered the move to push up the greenback, said Hachijuni Bank dealer Sho Komamura.

'The market was waiting for a cue to buy the dollar,' but the Japanese authorities are unlikely to intervene to sell the yen, he said.

The dollar also benefited in US trade from a rally in stock prices on hopes for a US economic recovery, he said.

Shares soared on Wall Street on Monday after some better-than-expected earnings news, giving a boost to Asian markets.

The VIX index, a measure of investor risk aversion, has now dropped to levels seen before the collapse of Wall Street giant Lehman Brothers last September, noted NAB Capital analyst John Kyriakopoulos.

'Improved investor risk-appetite led to selling of the 'safe haven' dollar and the yen,' he added.

Against Asian currencies, the dollar fell to 1.4634 Singapore dollars, down from 1.4709 on Monday, to 34.41 Thai baht from 34.53, and to 32.89 Taiwan dollars from 32.99.

It fell to 1,243.90 South Korean won from 1,259.40, to 10,335 Indonesian rupiah from 10,450 and to 47.38 Philippine pesos from 47.57.

' Dow Jones Newswires contributed to this story ' mis-oh/sst Forex-Asia AFP 190626 GM