TOKYO: The euro was mixed on Thursday in Asia after posting strong gains in New York ahead of a two-day European Union meeting, amid hopes for progress on addressing Greece and Spain's debt woes.
The unit edged lower to $1.3105 in Tokyo afternoon trade from $1.3120 in New York on Wednesday, bringing an end to its week-long climb, while it inched higher to 103.75 yen from 103.69 yen.
The single currency remains well up from the $1.2909 and 101.46 yen at the start of the week.
The dollar rose to 79.13 yen on Thursday from 78.97 yen in new York on speculation the Bank of Japan will introduce another round of monetary easing, while upbeat US economic data also provided support.
Japanese media have reported the country's central bank now sees inflation rising less than its 1.0 percent target for fiscal year to March 2014, which will likely put pressure on the BoJ to usher in further measures at next policy meeting.
"Risk appetite remains positive," National Australia Bank (NAB) said, citing factors including Barack Obama's improved polls after the second of three presidential debates and a September jump in US housing starts.
Adding to confidence was news China's economy grew 7.4 percent in the third quarter, easing for a seventh straight quarter, but a figure the government and analysts said indicated it was stabilising.
The EU summit, which starts Thursday, comes as reports circulate that Greece has largely reached agreement with its international creditors that will allow it to renegotiate its multi-billion-euro bailout.
"Sovereign risk could further recede if expectations rise that a comprehensive agreement could be reached following discussions at the summit," said Junichi Ishikawa, forex analyst at IG Market Securities in Tokyo.
There are also growing hopes that Spain will formally ask for a rescue to shore up its rocky finances.
The dollar was mixed against other Asia-Pacific currencies.
It rose to Tw$29.23 in Tokyo afternoon trade from Tw$29.14 on Wednesday, to 41.30 Philippine pesos from 41.21 pesos, to 53.08 Indian rupees from 52.76 rupees and to 9,609.00 Indonesian rupiah from 9,585.00 rupiah.
The greenback fell to Sg$1.2180 from Sg$1.2190 and to 1,105.00 South Korean won from 1,106.35 won while it was unchanged at 30.62 Thai baht.
The Australian dollar bought $1.0381, compared with $1.0308, while China's yuan changed hands at 12.65 yen against 12.55 yen.
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