TOKYO (AP) _ The dollar edged higher against the yen early Thursday amid further weakness in the euro. Japan's key stock index rose.

The dollar bought 122.34 yen in early trading, up 0.38 yen from late Wednesday in Tokyo and also above its late New York level of 122.23 yen.

The benchmark 225-issue Nikkei Stock Average gained 32.44 points, or 0.18 percent, to 17,991.34 in the first one hour of trading. On Wednesday, the average closed up 91.83 points, or 0.51 percent.

In currency dealings, the dollar's advance against the yen derived from its continued strength against the euro.

Market participants were yet to grasp where the euro's floor might be, as the European currency fell to another new low against the dollar early in the Asian session.

The euro was quoted at $1.0186 in early trading, down from $1.0243 late Wednesday in Tokyo.

Against the Japanese currency, the euro was quoted at 124.56 yen, down from 125.06 yen late Wednesday in Tokyo.

On the stock market, prices opened lower on profit-taking but settled down somewhat after Japan's Cabinet approved a supplementary budget totaling 520 billion yen ($4.26 billion). The move is designed to prop up the nation's ailing labor market.

The broader Tokyo Stock Price Index of all issues listed on the first section moved slightly lower, however, down 3.02 points, or 0.20 percent, to 1,474.00. The TOPIX closed down 1.70 points, or 0.11 percent, the day before.

The benchmark 10-year Japanese government bond fell to 1.6300 percent from Wednesday's finish of 1.6350 percent, driving its price up to 101.48 yen from 101.43 yen.