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TOKYO, May 24 (Reuters) The dollar edged up against the yen on Wednesday after the Japanese currency failed to log gains overnight, with some dealers saying the yen was dented by a report of possible human-to-human transmission of bird flu in Indonesia.

The World Health Organization (WHO) said on Tuesday that an Indonesian had died of bird flu after nursing his sick son, but WHO stressed that the virus was not yet spreading easily among people -- a necessary first step toward a feared pandemic.

A Japanese currency trader said the WHO report triggered some selling of yen in early Asian trading.

Another Japanese dealer, at a major Japanese bank, said the dollar was getting a reprieve after the yen failed to gain overnight even after Standard&Poor's raised its ratings outlook on Japan to positive from stable.

''We may be nearing the end of a market where people look to sell dollars and push it lower,'' said the dealer at the Japanese bank.

''We could see it move to range trading from now on.'' In early Tokyo trade, the dollar stood at 112.10 yen, up from around 112.00 yen in late New York trade on Tuesday.

The euro inched down to 143.35 yen from around 143.50 yen. It was at $1.2790 down from $1.2815.

The Australian dollar was also hurt by the WHO report, briefly dipping to $0.7493, wiping out a commodity-inspired spike to $0.7595 offshore.

REUTERS AD RN0742

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