"Right now, the markets are in a knee-jerk reaction," Dow Jones Newswires quoted a trader at a Singapore bank as saying, noting that the yen might be stabilising while traders awaited a proper assessment of the quake damage. The euro rebounded after investors flocked to the safe-haven dollar on Thursday, when Spain was hit by a ratings downgrade, violence surged in Libya, and China reported a rare trade deficit for February. Moody's said it had downgraded Spanish debt by a notch from Aa1 to Aa2 with a negative outlook, citing uncertainty over the country's ability to improve its finances. The news was an additional blow to the euro, amid lingering eurozone debt worries following Moody's downgrade of Greece this week. The dollar was stronger against most other Asian currencies. The unit rose to Sg$1.2737 from 1.2708 on Thursday, to 1,126.6 Korean won from 1,121.10, and to Tw$29.57 from 29.46. It also climbed to 8,790.00 Indonesian rupiah from 8,777.50, to 30.42 Thai baht from 30.30 and to 43.51 Philippine pesos from 43.62.