SINGAPORE -- The dollar fell against the yen and euro in Asia on Monday with uncertainty over the fate of US banking giant Citigroup adding to confusion in the market, dealers said.

The dollar eased to 95.02 yen in morning trade, from 95.89 in New York late Friday, while the euro rose to $1.2598 from $1.2587.

Tokyo markets were closed for a public holiday.

"There's still quite a bit of confusion and fear in the market," which is contributing to volatility, said Thomas Lam, senior treasury economist with United Overseas Bank Group.

He said traders were closely watching the outcome of reported talks over the fate of Citigroup.

US news reports on Sunday said authorities were considering a rescue plan for the bank, whose stock value plunged by 50 percent last week, prompting executives to consider selling all or part of the company.

Executives at the bank, once the world's largest, held weekend talks with US Federal Reserve and Treasury Department officials, the Wall Street Journal reported on its website.

Operating in more than 100 countries and with more than $2 trillion in assets, "Citigroup is widely viewed, both in Washington and on Wall Street, as too big to be allowed to fail," The New York Times reported.

The outcome of the talks could also have implications for other banks, and "that's why it's important," Lam said.

He added the confirmation that president-elect Barack Obama has named two key members of his economic team was in line with expectations, but does not clarify their likely course of action in the face of a global financial crisis.

On Sunday Lawrence Summers was confirmed as Obama's pick for director of the National Economic Council (NEC), his chief economic adviser. Summers earlier led the Treasury Department under former president Bill Clinton.

Obama's Treasury Secretary will be Timothy Geithner, president of the New York Federal Reserve. He has been leading US authorities' efforts to shore up panicky financial markets.