TOKYO -- The dollar was mixed in Asian trade on Friday as investors looked for signs on whether the worst of the recent credit crisis is over, dealers said.

The dollar dipped to 102.37 yen in Tokyo afternoon trade compared with 102.48 in New York late on Thursday.

The euro softened to $1.5902 from $1.5910. At one point on Thursday the single currency hit an all-time high of $1.5984 before retreating after a top European official expressed concern about the currency's surge.

The euro weakened to 162.77 yen from 163.06.

"The dollar was supported by a sense of optimism among investors," said Kenichi Yumoto, vice president of forex sales at Societe Generale. "The proportion of traders who feel that the credit crunch may be bottoming out is increasing."

Investors were digesting earning results from US banking heavyweight Merrill Lynch for clues as to whether an end to the subprime crisis is in sight.

The bank announced Thursday a first-quarter loss of $1.96 billion due to some nine billion dollars in mortgage-related write-downs, and said it would slash 10 percent of its workforce.

Markets were bracing themselves for possible write-downs by another US bank, Citigroup, when it releases its earnings results later in the day.

"Investors want to confirm if the worst of the credit crisis is over or not," said Tomoko Fujii, head of economic strategy at Bank of America in Tokyo.

There was also speculation that the US Federal Reserve might opt for a less aggressive interest rate cut later this month than previously expected.

"Traders continued to price less easing by the Fed on perceptions that the central bank has done enough to shore up the financial system and forestall a deep recession," NAB Capital strategist John Kyriakopoulos wrote in a note to clients.

The dollar gained some support after eurogroup chairman Jean-Claude Juncker warned markets against underestimating the Group of Seven industrialised countries' statement on currencies.

The G7 said last weekend that they were concerned about the impact of recent currency fluctuations on economic and financial stability.

Despite the remarks, dealers said the euro could strike new highs past the $1.60 level due to persistent inflation in the 15-member eurozone.

"The euro's rise is only natural and (traders) will ultimately pay little heed to European officials' attempts to curb the currency's strength due to the economic conditions in Europe," said Yumoto of Societe Generale.

Meanwhile the pound slipped to $1.9888 from $1.9918 after soaring Thursday on reports that the Bank of England is planning new measures to help cash-strapped British banks, dealers said.

The dollar firmed to 1,000.20 South Korean in late Asian trade from 991.95 a day earlier, to 30.28 Taiwan dollars from 30.20, to 41.95 Philippine pesos from 41.88 and to 31.36 Thai baht from 31.43.

The greenback slipped to 9,193.00 Indonesian rupiah from 9,200.50, and was flat at 1.3516 Singapore dollars.