Updated on
Summary The euro held steady against the dollar and yen in Asia after risk sentiment slightly improved.
The euro bought $1.3181 and 100.35 yen in Tokyo afternoon trade, compared with $1.3161 and 100.31 yen in New York late Wednesday.The euro climbed slightly on improved Australian trade data, a senior dealer at a major bank in Tokyo told Dow Jones Newswires, but added: The rise may be temporary.Australia posted a trade surplus of Aus$1.71 billion (US$1.84 billion) in December, up from Aus$1.34 billion in November and larger than analysts expectations of Aus$1.2 billion.The Australian dollar fetched US$1.0729 in afternoon trade after briefly rising above US$1.0750, its highest level since September 2011.For further trading cues, investors were keeping an eye on extended talks over a Greek debt write-down deal and a visit by German Chancellor Angela Merkel to Beijing.Merkel said Thursday that the euro had made Europe stronger as she began the three-day visit aimed in part at reassuring Beijing the eurozone crisis is under control.The dollar eased to 76.11 yen from 76.21 yen in New York even though Japanese Finance Minister Jun Azumi repeated a warning of possible yen-selling intervention.I am calmly watching the market now, but I cant overlook any acceleration in moves by short-term speculators in the currency market, Azumi told reporters Thursday.As I have been saying, I will take decisive steps if deemed necessary.The dollar was last below 76.00 yen in late October, when Japan stepped into markets to curb the yens historic rise and try to protect exports.Hopes for a further monetary easing by the Bank of Japan, along with possible currency intervention, could help keep the dollar from falling much below 76.00, analysts said.Azumi has said he wants the central bank to take appropriate steps to overcome deflation. The dollar was lower against other Asian currencies.It fell to 30.88 Thai baht from 31.02 baht on Wednesday, to Sg$1.2457 from Sg$1.2571, and to Tw$29.51 from Tw$29.62.The greenback also sank to 1,118.20 South Korean won from 1,126.85 won, to 8,900.00 Indonesian rupiah from 9,025.00 rupiah and to 42.69 Philippine pesos from 42.87 pesos.
