TOKYO -- The dollar was lower against the yen in Asian trade Friday as worries about credit market gridlock mounted ahead of a key vote by US lawmakers on a revamped Wall Street bailout package.

There are concerns that even if the US House of Representatives approves the $700-billion financial sector rescue package, it may not bring an end to the growing global economic turmoil, dealers said.

The dollar eased to 104.92 yen in Tokyo morning trade from 105.28 in New York late Thursday.

The euro was steady at a 13-month low of $1.3818, while slipping to 144.93 yen from 145.52.

Markets were concerned that liquidity shortages are spreading into the broader US economy as well to Europe and Japan, said Sumitomo Trust Bank chief strategist Saburo Matsumoto.

Traders were waiting for further moves by policy-makers to try to shore up the economy and ease a credit squeeze, dealers said.

There is speculation that central banks in the United States, the eurozone and elsewhere may cut lending costs to try to keep credit flowing.

"Although the Fed has little room to manoeuvre in terms of monetary policy, a rate cut would by symbolic as a sign of cooperation with other monetary authorities," said Matsumoto.

The Fed's key rate is already low at 2.0 percent following a series of cuts since the financial crisis erupted more than a year ago.

The European Central Bank on Thursday kept interest rates unchanged at 4.25 percent but bank chief Jean-Claude Trichet signaled a readiness to lower official borrowing costs.

"We have seen a reduction in the upside risks of inflation," he said, marking a shift in the ECB's usual hawkish tone.

A slew of gloomy data across major industrialized nations has set recession alarm bells ringing in some of the world's biggest economies.

Markets will be looking at a key US employment report for September due out later in the day to see how the credit squeeze has affected the jobs situation.

Next week financial ministers from the Group of Seven industrialized nations will meet in Washington and there are hopes they will come out with a strong message on cooperating to ease market anxiety, said Matsumoto.