TOKYO: The euro held firm against the dollar in Asia on Thursday as investors waited for European leaders' meeting on a permanent rescue mechanism for debt-laden nations. The euro edged up to $1.3914 in Tokyo morning trade from $1.3906 in New York late on Wednesday. It firmed to 115.17 yen from 115.07. The dollar was at 82.76 yen, marginally up from 82.70 yen. Global currency markets were largely flat Wednesday as traders looked ahead to US trade and jobs data and amid simmering problems in Libya and the eurozone. Crude oil prices are little changed and so didn't provide much direction to currencies, noted John Kyriakopoulos, currency strategist at National Australia Bank.
"Event risk for the euro is building with European leaders meeting on March 11 to start talks on producing a more robust response to the sovereign-debt crisis," he said in a note. Eurozone leaders hold a crucial Brussels summit on Friday to address plans for a permanent debt rescue system for member nations although most dealers anticipate an unimpressive outcome. The euro had hit $1.4036 on Monday, its highest level since the start of November, after European Central Bank President Jean-Claude Trichet signalled last week that the ECB could hike rates in April. Currency rates did not move much on a downward revision in Japan's gross domestic product for the last quarter of 2010. The Cabinet Office said Japan's economy contracted by more than first thought in the fourth quarter of 2010 due to weaker-than-expected business investment and private consumption. Japan's economy contracted by a revised 1.3percent in the quarter, compared to an initial estimate of a 1.1percent slide as expiring subsidies hit car sales, a new tobacco tax sapped cigarette demand and a strong yen hurt exports.
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