SINGAPORE: The euro edged up slightly against the dollar in Asia Thursday after the single currency was earlier hit by news that Portugal's parliament had rejected a tough austerity plan, analysts said.
The single European currency bought $1.4082 in morning Asian trade, up from $1.4080 late Wednesday in New York but it fell to 114.07 yen from 114.61.
The greenback was at 81.00 yen from 80.93 on Wednesday.
The euro edged up on bargain hunting after diving Wednesday from $1.4196 when Lisbon refused to pass the crucial reform package, said Simon Teo, senior dealer at Phillip Futures in Singapore.
The failure of the proposal the government's fourth attempt since May last year aimed at dragging the financially strapped country out of an economic mire led Prime Minister Jose Socrates to resign.
The decision, which could mean Portugal follows Greece and Ireland in having to seek a bailout, also deals a blow to a fragile recovery in the eurozone.
Other European governments were also facing strong opposition to harsh austerity measures introduced to meet stringent budgetary demands by the European Union, and Lisbon's precedent did little to calm rattled nerves.
However, Teo told AFP that despite its problems, dealers were still confident that the euro will be a safe bet in the long term.
Data out of the United States added to global recovery concerns after the Commerce Department reported Wednesday that new home sales in February slumped to their lowest level since records began in 1963.
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