Falling oil prices also helped prop up the greenback, they said.
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The euro was at 1.4898 dollars in Tokyo morning trade, unchanged from its level in New York late Monday.
The dollar rose to 110.27 yen from 110.10, remaining close to seven-month highs.
The euro gained to 164.27 yen from 164.04.
"Market sentiment is focused on slowing growth in Europe," said Kenichi Yumoto, vice president of forex sales at Societe Generale.
In the latest gloomy report from the eurozone, French industrial output fell sharply in May and June, raising a risk that overall activity in the second-biggest eurozone economy might have contracted in the second quarter.
Expectations of an interest rate hike by the European Central Bank (ECB) have receded in light of recent weak eurozone economic data.
The euro gained little support from a warning by ECB council member Klaus Liebscher that there is "absolutely no room for complacency" on inflation.
The comments prompted some inv