TOKYO, (AFP) - The euro edged down in Asia on Thursday after rising overnight on speculation that Europe would announce credit-easing measures, analysts said.
The euro fetched 1.3106 dollars in Tokyo afternoon trade, down from 1.3138 dollars in New York late Wednesday, as investors adjusted positions.
The euro declined to 110.18 yen from 110.59 yen as Japanese exporters sold the common currency after its sharp rise overnight. On Wednesday, the euro was in the 108-yen range in Tokyo.
The dollar was trading at 84.10 yen compared with 84.19 yen in New York after the US unit was supported by encouraging US economic data including robust payrolls data.
The euro benefited from an easing of concerns that European economies with large fiscal debts would require bailouts, as Spain unveiled new measures to cut costs and revive its ailing economy.
Bond market pressures on financially vulnerable eurozone states eased as interest rates, or yields, on 10-year Portuguese and Spanish bonds softened.
The turnaround came after turmoil following Sunday’s announcement that the European Union and the International Monetary Fund had agreed an 85 billion euro (111 billion dollars) bailout to shore up Ireland’s banking sector and meet its debt obligations.
The European Central Bank is expected to maintain its main lending rate at a record low level of 1.0 percent at a monetary policy meeting in Frankfurt later Thursday.
But “there is speculation that the ECB may still take some credit-easing action”, said Mizuho Corporate Bank market economist Daisuke Karakama.
There is anticipation that the ECB “will go for monetary easing to help cushion the damage on the eurozone economy, when the region needs to cut back on fiscal spending and tolerate slower economic growth”, he said.
But Karakama said it would take time to solve Europe’s sovereign debt problems.
“The euro will fall back below 1.30 (dollars) sooner or later,” he said.
Karakama said the dollar had stayed above 84 yen with support from the US economic data released Wednesday.
Payrolls firm ADP said US private-sector employment saw strong gains in November, with payrolls expanding by 93,000 -- the largest jump in three years.
The dollar traded mixed against regional Asian currencies.
It fell to 1.3141 Singapore dollars from 1.3152 on Wednesday, to 30.36 Taiwan dollars from 30.39 and to 9,017 Indonesian rupiah from 9,020.
It declined to 30.02 Thai baht from 30.04 but rose to 1,150.80 South Korean won from 1,150.65 and to 43.90 Philippine pesos from 43.76.