TOKYO (AFP) - The dollar weakened slightly against the yen on Friday, hovering not far off a post-war low against the Japanese currency, in subdued trading at the start of the summer holiday season. The greenback traded at 76.77 yen in the afternoon in Tokyo against 76.88 yen in New York late Thursday. The yen, seen as a safe-haven unit amid market turmoil, had Thursday neared the post-World War II high of 76.25 to the dollar, which it hit in the volatile week after Japans March 11 earthquake and tsunami. Market activity was subdued in Japan as the Obon festival summer holiday season kicks off this weekend. The euro, weighed down by European debt woes, on Friday eased to $1.4194 from $1.4238, and to 108.98 yen from 109.24. The euros undertone will remain weak as long as concern lingers over the sovereign debt problem and its possible impact on banks as well as the overall economy, said Bank of Tokyo-Mitsubishi UFJ senior analyst Sumino Kamei. Tokyo stocks fell into negative territory in the afternoon, denting investor sentiment and weighing on the risk-sensitive euro. Some market participants said European regulators announcement that the speculative practice of short-selling would be restricted from Friday in Belgium, France, Italy and Spain was hurting sentiment. Investors were also watching whether Japanese authorities would step back into currency markets after they sold yen last week on fears that its strength will hurt exporters, a driving force of the economy. Finance Minister Yoshihiko Noda said Friday that Japan will consider various steps if the yens one-sided moves continue, according to Dow Jones Newswires. Kamei said the market was also closely watching upcoming US economic indicators for fresh cues.