TOKYO. Dec 11: The US dollar fell against the Japanese yen Wednesday over speculation that Japanese buying of US bonds may slow down, traders said. Tokyo stock prices fell Wednesday after a two-day rise, reports AP.

At late afternoon, the dollar was changing hands at 112.86 yen, down 0.74 yen from late Wednesday and also below its late New York level overnight of 113.41 yen. It ranged between 112.83 yen and 113.39 yen in Wednesday's trading.

The dollar moved below the 113-yen level on large-lot selling by US funds, traders said.

A Dai-Ichi Kangoyo Bank dealer said the dollar was under selling pressure following reports in Wednesday's Wall Street Journal that Japanese institutional investors may curb their investment In US bonds.

A surprise rate cut by Australia's central bank drove the Australian dollar down sharply early in Asian trading early, and also carried down the US dollar and German mark against the yen. traders said.

On the stock market, share prices were weighed down by a round of arbitrage selling and profit-taking on blue chip