TOKYO, Japan -- The dollar was softer in Asia Monday ahead of interest rate decisions in the US and Europe, as central banks wrestle with the twin threats of weak economic growth and rising inflation, dealers said.

The dollar slipped to 107.57 yen in Tokyo morning trade from 107.68 in New York late Friday. The euro firmed to $1.5574 from $1.5555 while holding steady at 167.50 yen after 167.52.

Trade was quiet with the Federal Reserve, the European Central Bank (ECB) and the Bank of England all expected to leave borrowing costs on hold this week, said Yosuke Hosokawa, chief forex strategist at Chuo Mitsui Trust Bank.

The Fed is due to announce its decision Tuesday, followed by the ECB and the Bank of England on Thursday.

The Fed is expected to leave its benchmark rate at 2.0 percent, saying that "while the economy is cooling there is still a need to remain vigilant on inflation," Hosokawa said.

The ECB is expected to keep official borrowing costs at 4.25 percent as it battles to try to contain inflation without tipping the euro zone economy into recession, dealers said.

"Although there won't be any action from the ECB and it will continue to focus on inflation, it will also recognize areas of the economy are weakening," said Hosokawa.

Australia's central bank meets Tuesday, with markets on alert for any signals that a rate cut could be on the cards due to worries about the health of the domestic economy and banking sector.

Traders were digesting Friday's data showing that the US economy shed 51,000 jobs in July, a seventh straight monthly loss, while unemployment hit a four-year high of 5.7 percent.

But the closely watched report was not as bad as feared, as most economists had predicted 75,000 jobs would be lost.

In the euro zone, a survey showing lackluster manufacturing activity stoked recession fears, dealers said.