TOKYO: The euro rose in Asia on Friday after the head of the International Monetary Fund said the global lender was likely to achieve its target of raising $400 billion as a firewall against future debt crises.
The single currency was changing hands at $1.3159 and 107.23 yen in Tokyo, compared with $1.3134 and 107.19 yen late Thursday in New York.
The dollar bought 81.50 yen, against 81.60 yen. Christine Lagarde's optimistic forecast came as finance chiefs met in Washington where they discussed plans to support troubled economies.
She called on members of the IMF to chip in. Her comments were followed by Japan's Finance Minister Jun Azumi, who also said the Washington-based IMF was nearing its target for the rescue fund.
But worries about Italy and Spain's finances continued to drag on the single currency, said Takao Yahata, chief manager of currency trading at Mitsubishi UFJ Trust and Banking.
A successful Spanish bond auction on Thursday appeared to do little to allay investors' fears about Madrid's finances and the continent's fiscal woes.
"We can't rule out the risk that markets will again become doubtful over the health of Spain's banks and, if you look at Italy, its road to fix its fiscal problems is bumpy due to unfavourable economic conditions," Yahata told Dow Jones Newswires.
Japan has pledged $60.0 billion to the IMF, saying its contribution was a critical part of the organisation's bid to boost a global firewall against Europe's debt crisis.
With the United States not taking part, all eyes are on China and the other emerging powers to see if they will contribute some of their new-found wealth to help European economies.
The dollar was mixed against other Asian currencies, slipping to 1,139.00 South Korean won from 1,140.65 won on Thursday, to Sg$1.2505 from Sg$1.2519, and to 42.61 Philippine pesos from 42.66.
It also fell to 9,167.00 Indonesian rupiah from 9,180.00, while holding steady at 30.89 Thai baht and Tw$29.50.
Comments
Comments are closed for this article.