Updated on
Summary The euro was steady in Asian trade Thursday after European Central Bank's meeting.
The euro was steady in Asian trade Thursday after a rise in New York driven by the European Central Banks move to keep cash flowing to eurozone lenders.The single currency bought $1.2560 in Tokyo afternoon trade, edging down from $1.2580 in New York late Wednesday, while changing hands at 99.64 yen against 99.63 yen.The dollar rose to 79.34 yen from 79.20 yen.Euro-buying sentiment turned up in New York after the ECB held interest rates at 1.0 percent and said it would keep cash flowing to the 17-nation eurozones embattled banks, at least through year-end, dealers said.The beleaguered currency, which has treaded multi-year lows in recent weeks, was also supported by speculation that weak ECB growth forecasts would usher in future rate cuts, dealers said.French and Spanish bond auctions later Thursday will be key cues for the euro, amid worries about Madrids finances and fears over a possible Greek exit from the eurozone.It may seem as if concerns over the European debt crisis eased somewhat with the euros rebound, but Thursdays Spanish and French bond auctions will serve as a test for measuring the markets sense of caution, said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.Traders were also looking to Fed Chairman Ben Bernankes congressional testimony later in the day for hints about loosening monetary policy to help kickstart the worlds biggest economy.Hints of further easing may help the dollar to the 80 yen level, but a drop was in store for the greenback if the Fed chiefs comments turn negative on the economy, said Masafumi Yamamoto, chief forex strategist at Barclays.But so far we believe the former to be more likely, he added.The dollar was lower against other Asian currencies in improved risk. It fell to 1,170.55 South Korean won from 1,173.65 won on Wednesday, to Tw$29.86 from Tw$29.88 and to 43.11 Philippine pesos from 43.30 pesos.The greenback also declined to Sg$1.2758 from Sg$1.2800, to 31.46 Thai baht from 31.48 baht and to 9,388.00 Indonesian rupiah from 9,473.00 rupiah.The Chinese yuan was trading at 12.47 yen, from 12.36 yen.
