Euro eases against dollar

TOKYO: The euro eased against the dollar amid lingering concerns over the European debt crisis, a reversal after weak US economic indicators sent the greenback lower late last week, dealers said.

The euro fetched $1.4298 in Tokyo morning trade, down from $1.4317 in New York late Friday. The single European currency inched down to 115.58 yen from 115.61 yen. The dollar rose to 80.81 yen from 80.77 yen.

"Investors moved to reap profits following the euro's rise against the dollar late last week," said Dai Sato, dealer at Mizuho Corporate Bank.

"The dollar was sold after weak US economic indicators gave rise to a view that the Federal Reserve may delay steps to bring its monetary policy back to normal from the current ultra-expansionary phase," he said.

Sato added that market activities are expected to remain subdued as New York and London markets will be closed Monday for holidays.

The dollar began falling on Thursday after a report showed US jobless claims rose after two weeks of declines.

Washington also left unrevised its estimate of first-quarter economic growth at a tepid 1.8 percent. Most analysts had expected a rise to 2.0 percent.

The US Federal Reserve has kept rates at zero since December 2008 to boost an economic recovery while the European Central Bank hiked its rates by a quarter point in April and is expected to do so again soon.

Meanwhile, Greece's sovereign debt problem continued to overshadow the single European currency, dealers said.

Greek Finance Minister George Papaconstantinou said Sunday he was confident about receiving the next aid installment, rejecting a German magazine article that cast doubt over the transfer.

The head of the eurozone finance ministers, Jean-Claude Juncker, warned last week that the International Monetary Fund may block the next installment, the fifth tranche in a 110-billion-euro loan package agreed for Greece.

Der Spiegel magazine of Germany reported Sunday that the European Union will follow suit unless Athens does more to fix its public finances.

"It will be news on the EU periphery debt situation that will draw the bulk of the attention," RBC strategists told Dow Jones Newswires.

Copyright AFP (Agence France-Presse), 2011