TOKYO: The euro strengthened against the dollar in Asia on Thursday after tumbling to a four-month low on rising concern over the eurozone's fiscal woes as debt-hit Greece gets set for fresh elections.
The single currency, which fell to $1.2681 on Wednesday its lowest level since mid-January bought $1.2739 and 102.24 yen in Tokyo afternoon trade, up from $1.2715 and 102.13 yen in New York late Wednesday.
On Thursday, the dollar was changing hands at 80.27 yen against 80.32 yen, after official data showed Japan's economy grew 1.0 percent in the January to March quarter from the previous three months.
The euro was slightly higher on short covering as a mixed picture on Asian markets improved risk sentiment after world stock exchanges tumbled Wednesday, said Junichi Ishikawa, forex analyst at IG Market Securities in Tokyo.
"Investors are adjusting their positions after the long streak of euro weakness," he told Dow Jones Newswires.
Ishikawa said the euro "has been slightly oversold" but still expected weakness in the common currency over the longer term.
Christopher Vecchio, currency Analyst at DailyFX, said: "With the eurozone backdrop very much in place now, volatility is here to stay, and rallies should be capped by $1.2800 (in euro/dollar trade)."
Greece on Wednesday swore in a senior judge as caretaker prime minister who is charged with holding new elections after an indecisive vote on May 6.
Tokyo share prices turned up in afternoon trade with Hong Kong and Shanghai shares also rising, defying concerns over Greece's future in the eurozone.
The dollar was lower against other Asian currencies. It eased to 31.38 Thai baht from 31.48 baht on Wednesday, to 42.88 Philippine pesos from 42.97 pesos, to Tw$29.50 from Tw$29.60, and to Sg$1.2642 from Sg$1.2670.
The greenback also slipped to 1,162.20 South Korean won from 1,164.25 won and to 9,338.00 Indonesian rupiah from 9,357.50 rupiah.
Comments
Comments are closed for this article.