TOKYO: The euro firmed against the dollar and yen in Asia on Friday as investors breathed a sigh of relief over European bond sales that hinted at rising confidence in the region's public debt.
The euro bought $1.3475 and 104.88 yen in Tokyo morning trade, up from $1.3461 and 104.56 Japanese yen in New York late Thursday. The dollar rose to 77.85 yen from 77.66 yen.
The market was also keeping an eye on the release of US non-farm payrolls data later Friday for a snapshot of the jobs picture in the world's biggest economy
The Japanese unit could weaken briefly if the November US employment data comes in stronger than expected, said Junya Tanase, chief currency strategist at JPMorgan in Tokyo.
"(But) it is unlikely that risk-on sentiment keeps on growing. Instead we may have to stay alert over a reversal of the sentiment," he told Dow Jones Newswires.
The euro held firm after solid bond auctions by France and Spain on Thursday in the wake of joint action by the world's major central banks to pump liquidity into the global financial system.
France raised 4.346 billion euros in new middle and long-term bonds, with lower yields on 10 and 15-year bonds but slightly higher rates on 30-year bonds.
The lower rates of interest demanded by investors hinted the market was growing more confident that a European fiscal implosion would be averted.
Spain had to pay sharply higher borrowing costs for its sale of 3.75 billion euros worth of bonds Thursday, but demand for its debt oustripped supply.
The euro was also underpinned by hopes for more decisive action from the European Central Bank, and possibly the International Monetary Fund, to resolve the debt crisis, dealers said.
Meanwhile, French President Nicolas Sarkozy said France and Germany would push for a new European Union treaty to impose tough budgetary discipline on the debt-ravaged eurozone.
The euro has a critical week ahead with Sarkozy to meet Britain's Prime Minister David Cameron on Friday to discuss the crisis and then Germany's Chancellor Angela Merkel on Monday to hash out a joint Franco-German proposal to save the single currency bloc.
Then, on December 8 and 9, European Union leaders will meet at a summit in Brussels, a meeting which some observers have billed as their last chance to restore the credibility of the eurozone.
Comments
Comments are closed for this article.