TOKYO: The euro bounced off lows hit in New York but still lacked steam in Asia on Friday as market players continue to worry about the eurozone economy while waiting for key US jobs data.
The single currency bought $1.2969 in Tokyo morning trade, unchanged from late Thursday in New York, where it had briefly fallen to around $1.2950 at one point.
The euro inched up to 107.00 yen from 106.85 yen, while the dollar firmed to 82.52 yen from 82.42 yen.
The euro plunged Thursday after the European Central Bank sharply cut its eurozone growth forecast for next year while also revealing that its decision to leave its key interest rate unchanged was not unanimous.
"Adding something to pressure on the euro is the fracturing of Italian parliamentary support for the technocratic government of Mario Monti," National Australia Bank said.
Lawmakers supporting Silvio Berlusconi abstained from two confidence votes in parliament on Thursday in a muscle-flexing exercise that threatened to bring down the prime minister.
"This may not be fatal, but it does bring some risk of a general election before the current term of the technocratic government ends next April," the bank said in a note.
"Public threats by Mr Berlusconi to consider re-running for (office) have also frightened a few horses," it said.
Investors were awaiting US jobs data due out later Friday as well as any developments on US lawmakers' negotiations on averting a tax and austerity crisis that will likely send the world's biggest economy into recession.
If there is no deal to avert the so-called "fiscal cliff" taxes on all Americans will go up on January 1.
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