TOKYO: The euro edged lower in Asian trade on Tuesday amid growing concerns over Spain's sovereign debt outlook ahead of bond auctions by Madrid, dealers said.
The euro bought $1.3112 and 105.43 yen in Tokyo afternoon trade, compared with $1.3143 and 105.64 yen in New York late Monday. The dollar was changing hands at 80.41 yen against 80.39 yen.
"Market focus looks set to remain in Europe," Mike Jones, currency strategist at Bank of New Zealand, said in a note.
"Spanish debt auctions tonight and on Thursday will be closely watched," Jones said. "Any evidence of waning demand for Spanish debt would see a heavy toll taken on the euro."
Spanish bond yields have surged in recent days as worries grow that the debt-strapped country may not be able to avoid a financial bailout.
Overnight euro-selling pressure was limited as the dollar lost ground after the US Federal Reserve index for manufacturing activity in New York showed a sharp decline this month, reflecting a surge in producers' input prices.
The Chinese yuan rose against the dollar Tuesday, the second day of trading after Beijing allowed its currency to move in a wider daily range against the greenback.
The dollar bought 6.3031 yuan, from 6.3150 yuan late Monday.
"Trading is a bit choppy and clients are starting to have a protective mentality in their decisions to ensure they are not too exposed," said a Shanghai-based trader at an Asian bank.
The People's Bank of China said Saturday that it would widen the yuan's daily trading band against the dollar, amid criticism that China keeps the unit's value artificially low to boost exports.
The dollar was mixed against other Asian currencies, rising to 1,140.28 South Korean won from 1,138.75 won on Monday and to 9,187.00 Indonesian rupiah from 9,149.00 rupiah.
But the US unit fell to 30.85 Thai baht from 30.87 baht, to Sg$1.2520 from Sg$1.2539, to Tw$29.51 from Tw$29.52 and to 42.72 Philippine pesos from 42.77 pesos.
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