TOKYO: The euro weakened against major currencies in Asian trade Wednesday before a European Central Bank policy meeting, amid expectations that the bank will chop its key interest rate.
The common currency was quoted at $1.2590 and 100.28 yen in Tokyo morning trade, down from $1.2607 and 100.64 yen in New York late Tuesday.
The dollar was also weaker against the Japanese currency at 79.65 yen from 79.83 yen in US trade.
The yen has been increasingly viewed as a port in the storm amid concerns about the eurozone crisis and the pace of a US economic recovery.
Dealers said markets would be subdued ahead of Thursday's ECB meeting and the US Independence Day holiday.
Economists expect the bank will lower its key interest rate, currently at an all-time low of 1.0 percent, to help boost sagging growth amid the eurozone sovereign debt crisis.
"Markets are expecting a rate cut (from the ECB) and then it will all be about the statement. Markets will be looking to see whether the ECB comes out to support what the European leaders came out with last week," Daniel Brdanovic told, HSBC New Zealand chief manager, told Dow Jones Newswires.
A surprise list of measures aimed at reversing the eurozone's spiralling crisis had sent the euro soaring last week following EU talks in Brussels.
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