TOKYO: The euro edged down against other major currencies in Asia on Tuesday amid concerns that Italy was next in the line of fire in the European sovereign debt crisis.
The euro bought $1.3744 and 107.24 yen in Tokyo afternoon trade, slightly down from $1.3773 and 107.52 yen in New York late Monday. The dollar was almost flat, trading at 78.03 yen.
The euro remained vulnerable to downside risks amid escalating concerns about the sovereign debt crisis spreading to Italy, said Barclays Capital chief strategist Masafumi Yamamoto.
The market is keeping a close eye on the Italian parliament's vote on a budget-related bill later in the day.
Yamamoto noted that the vote could lead to a no-confidence motion against Prime Minister Silvio Berlusconi if he fails to muster a majority.
"The political uncertainty is highly likely to continue weighing on the euro," Yamamoto told Dow Jones Newswires.
Speculation over the Berlusconi's fate has intensified in the past 24 hours. He has denied reports he would resign, but a loss of investor confidence in his government has sent Italy's borrowing costs surging.
Yields on sovereign Italian debt shot up to nearly 6.65 percent on Monday.
Greece was meanwhile scrambling to choose a new prime minister and government, as global pressure mounted for a deal and a feared default loomed within weeks.
The dollar was mixed against other major Asian currencies. It rose to Sg$1.2720 from Sg$1.2676 Monday, to 1,116.60 South Korean won from 1,114.70, and to 43.04 Philippine pesos from 42.90. It was flat at Tw$30.07 and 30.68 Thai baht, while it eased to 8,940.00 Indonesian rupiah from 8,970.00.
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