TOKYO--The dollar slipped against the yen in Asian trade Tuesday as safe-haven demand for the greenback declined on hopes of an improvement in the battered global economy, dealers said.

The dollar fell to 97.23 yen in Tokyo afternoon trade from 97.50 in New York late Monday.

The greenback was hit by profit-taking on gains sparked by demand for assets seen as a relatively safe bet during the economic crisis, Mitsubishi UFJ Trust and Banking dealer Hideaki Inoue said.

Many market watchers believe the dollar is likely to decline against most rival currencies in the coming months as risk aversion recedes.

However, as the yen has also benefited from safe-haven flows some forecasters are predicting the Japanese currency will also lose its allure.

European Central Bank governor Jean-Claude Trichet signaled that the global economy is near a turning point.

"We are, as far as growth is concerned, around the inflection point in the (economic) cycle," he told a meeting of central bankers.

The euro edged up to $1.3592 from $1.3585 but fell to 132.19 yen after 132.46.

The European currency fell sharply on Monday after France and Italy reported a big slump in industrial output in March.

The disappointing declines "could mean that the eurozone first quarter gross domestic product contraction is steeper than expected," Standard Chartered analysts wrote in a note.

Against Asian currencies, the dollar rose to 1,243.65 South Korean won from 1,243.50 a day earlier, to 1.4612 Singapore dollars from 1.4596 and to P47.38 from P47.05 in the Philippines.

But it slipped to 10,405 Indonesian rupiah from 10,420, to 34.61 Thai baht from 34.84 and to 32.93 Taiwan dollars from 33.02.-- Dow Jones Newswires contributed to this report