TOKYO: The euro weakened in Asia Monday as markets took a risk-averse stance on the common currency ahead of a European leaders austerity meeting later in the week and the release of Chinese economic data.
The 17-nation currency dipped to $1.2909 and 101.17 yen in Tokyo morning trade from $1.2958 and 101.60 yen in New York late Friday.
The dollar bought 78.35 yen against 78.39 yen in US trade last week.
There was little fresh news to drive currency markets with the euro weakness likely stemming from sell orders amid weakness in other risk-sensitive currencies including the Australian dollar on concerns over China's economy, traders said.
"The fall was not driven by news but flows, possibly from overseas players," a senior trader at a Japanese bank told Dow Jones Newswires.
This week, China is releasing a raft of economic data as investors try to read the direction of the world's second-biggest economy.
On Monday, Beijing said inflation slowed in September to 1.9 percent year-on-year, opening the door for further stimulus to boost growth.
China's economy grew 7.6 percent in the second quarter through the end of June for its weakest performance in three years and the sixth straight quarter of slowing expansion.
Third-quarter economic growth figures are due out Thursday.
"Any evidence of the China growth slowdown having reached a nadir during the third quarter is likely to provide a layer of support under the Australian dollar," National Australia Bank said in a note.
Eyes will be on a European Union summit later this week where leaders are expected to discuss the next tranche of bailout money for Greece amid growing speculation that Spain will tap the eurozone's new permanent bailout fund.
Dollar-yen trade was likely to be muted in Monday's session, said Kengo Suzuki, a forex strategist at Mizuho Securities in Tokyo.
"The market is looking for fresh cues," he said.
"It's unlikely we'll see a big move during Asian trading hours."
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