Euro steady vs other currencies in Asian trade

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Euro steady vs other currencies in Asian trade

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The dollar was changing hands at 78.25 yen against 78.29 yen.

27 July,2012 10:05 am

The euro was steady against other currencies in Asian trade on Friday following a rally in New York after the head of the European Central Bank pledged to support the troubled currency. The unit bought $1.2278 and 96.08 yen in Tokyo, a tad down from $1.2280 and 96.15 yen in New York late Thursday.ECB chief Mario Draghi said Thursday the ECB is ready to do whatever it takes to preserve the euro. And believe me it will be enough. The comments stoked speculation it will make further bond purchases to help bring down soaring state borrowing costs, particularly in Italy and Spain.The euro would likely remain well-supported in Asia after risk aversion fell away overnight, said BNZ forex strategist Kymberly Martin in a note.In order for the current improved mood to be maintained, ECB words will need to be followed with action before too long, Martin said.Next Thursdays ECB meeting looms large.Japans Finance Minister Jun Azumi on Friday welcomed Draghis pledge if it leads to more aggressive direct steps for fiscally troubled countries such as Spain.The ECB under Mr. Draghi has already been acting quite aggressively, but there have been some issues such as the central banks inability to directly offer funding for individual banks, such as Spanish banks, Azumi said.From that perspective, I would like to welcome (the remarks) if he means to provide more aggressive direct support, he told reporters.Later in the day, eyes will be on the United States, which is due to release second-quarter economic growth data, with dealers looking for signs for a fresh round of stimulus by the Federal Reserve.