TOKYO: The euro remained under pressure in Asia on Wednesday as debt-ridden Greece's abrupt call for a referendum over a eurozone bailout package saw debt crisis fears storm back into markets.
The euro fetched $1.3713 and 107.24 yen in Tokyo trade, compared with $1.3697 and 107.29 yen late Tuesday in New York where the common European unit fell over renewed worries about European debt.
The dollar edged down to 78.18 yen from 78.34 yen, moving narrowly in a tug-of-war between the effect of Japan's yen-selling intervention Monday and safe-haven purchases.
Greece plunged the eurozone back into crisis and markets into panic on Tuesday with a shock call for a referendum on the debt rescue package reached just days ago with after tough negotiations.
Prime Minister George Papandreou's decision to hold a confidence vote on Friday and then a referendum on the debt deal stunned investors, angered EU leaders and left the eurozone back at square one.
"If the bailout plan is rejected in the referendum, a default of Greece will be in sight," said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.
"The euro had risen after the bailout plan was agreed on hopes (of a solution to the crisis) but there was no substantial chance in the situation," Kamei said.
A senior dealer at a major Japanese bank told Dow Jones Newswires: "This is just bad for the euro and the eurozone."
The euro struck a recent high of above $1.42 after European Union leaders agreed on a landmark deal to cope with the crisis with an expansion of a rescue fund and cut in Greek debt.
European and US stock markets plunged Tuesday and Tokyo stocks were down nearly two percent on Wednesday morning.
While investors are focusing on headlines from Greece, eyes are also on a Wednesday meeting of the US Federal Reserve's policy board and a post-meeting news conference by Fed Chairman Ben Bernanke.
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