TOKYO: The euro remained in a tight range against the dollar in Asia on Tuesday as persistent eurozone debt worries hurt sentiment, with concerns growing over the future of the 17-nation bloc.
Sentiment was soured after German Chancellor Angela Merkel's ruling Christian Democratic Union party approved a measure that would allow for struggling countries to exit the eurozone without leaving the European Union.
Germany's news weekly Der Spiegel said in its online edition that it was "remarkable" that the CDU, which has always been the "Europe party", was officially discussing the possible euro exit of some states.
The euro fetched $1.3627 and 105.00 in Tokyo trade against $1.3629 and 105.07 in New York late Monday.
The dollar was at 77.05 yen compared to 77.09 yen.
The euro remained weak against the dollar after falling overnight with concerns over sovereign debt problems in the continent showing no signs of abating.
The nervousness was reflected in the yields being demanded for Italian and Spanish debt.
Italy's Treasury on Monday raised 3.0 billion euros ($4.1 billion) in a five-year bond auction but it had to pay interest rates of 6.29 percent, up sharply from 5.32 percent in October.
Uncertainty over whether or not Italy can implement austerity measures overshadowed the market as earlier relief over the nomination of former EU commissioner Mario Monti as new prime minister proved short-lived.
Spanish borrowing costs soared to well above 6.0 percent as an election loomed there.
"The market is likely to remain choppy, nervously reacting to positive and negative headlines," a senior dealer at a major Japanese bank told AFP. "But the euro's weak undertone shows that strong concerns over Europe are unchanged."
After the dollar briefly fell below 77 yen in overnight trading, caution over possible action by Japanese authorities' to weaken the yen supported its downside.
Japan stepped into the market late October as the persistently strong yen, which shrinks exporters' repatriated profits and makes domestically produced goods less cost competitive abroad, has dented its post-quake recovery.
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