TOKYO: The euro slipped in Asian trade Tuesday amid gloomy sentiment over the eurozone debt crisis and few fresh trading cues, while markets looked ahead to a speech by the US central bank chief this week.
The euro bought $1.2482 and 98.00 yen in Tokyo afternoon trade, down from $1.2535 and 98.41 yen in New York late Monday.
The dollar also edged lower to 78.52 yen from 78.74 yen.
Markets reacted little after the Japanese government cut its view of the economy in August for the first time in 10 months as slowing exports weighed on production and consumer spending showed few signs of picking up.
The government said in its monthly economic report Tuesday that the world's third-largest economy was "on the way to recovery at a moderate pace" but added that "weak movements have been seen recently".
The euro was hurt by German business confidence data released Monday, which showed sentiment fell for the fourth consecutive month as Europe's biggest economy shows more signs of wear and tear from the eurozone crisis.
Traders were on the lookout for signs of fresh monetary easing measures, with much of their attention focused on a speech that US Federal Reserve chairman Ben Bernanke was to deliver at an economic symposium on Friday.
Eurozone money supply data due out later Tuesday was also "relevant" to next week's monetary policy decision by the European Central Bank (ECB), National Australia Bank noted.
"Shortfalls in money and credit growth are part and parcel of the rationale for more monetary easing," it said in a note.
Investors were looking for signs as to whether the ECB would restart a bond buying programme designed to help bring down sky-high borrowing costs among debt-hit nations including Spain and Italy.
European Union president Herman Van Rompuy is to hold talks with Spanish Prime Minister Mariano Rajoy on Tuesday.
"Any hints as to how close Spain is to formally requesting assistance from her EU partners will be important given this is a precondition for the ECB resuming secondary market bond buying," the bank said.
The dollar was mostly higher against other Asia-Pacific currencies.
It gained to 9,533 Indonesian rupiah from 9,526 rupiah on Monday, to Sg$1.2549 from Sg$1.2514, to 55.81 Indian rupees from 55.58, and to 1,137.20 South Korean won from 1,134.45 won.
The greenback also rose to 31.35 Thai baht from 31.26 baht and to 42.31 Philippine pesos from 42.25 while staying unchanged at Tw$29.95.
The Australian dollar fell to $1.0356 from $1.0391 while the Chinese yuan bought 12.32 yen against 12.36 yen.
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