Euro loses ground on dollar in Asian trade

The euros gains against the dollar lost steam in Asian trade on Monday after enjoying a strong rally on news of a victory by pro-bailout parties in Greece crucial general elections.The single currency jumped above $1.27 in early Tokyo, from $1.2644 in New York late Friday, as markets breathed a sigh of relief over the polls, which eased fears Greece may renege on terms of a bailout deal and ultimately exit the eurozone.But the rally proved to be short-lived with markets doubtful over whether the polls were enough to ensure a positive long-term outlook for the currency, said a senior dealer at a major bank in Tokyo.In late morning Tokyo trade, the euro bought $1.2682 while remaining strong against the Japanese currency at 100.54 yen, from 99.47 yen in New York.The dollar rose to 79.26 yen from 78.67 yen.It is highly possible that a sense of relief will prevail in markets over a short term. Over a long-term, however, the euros weak tone will likely continue, Credit Suisse analyst Hiromichi Shirakawa said in a research note.The 17-nation eurozone still faces pressures over the weak state of its finances as well as banking troubles in Spain, which would delay any economic recovery, Shirakawa added.Tensions had been mounting up to the Greek vote with the single currency hitting multi-month lows in recent weeks.As it became clear the two main pro-bailout parties had garnered enough votes, world powers pushed for a new cabinet to be formed as soon as possible to get to work solving the countrys problems.But Auckland-based HiFX Senior Trader Stuart Ive said there are still a lot of unknowns out there.At the end of the day, the Greeks are going to need more money and they are going to want longer to pay it and Germany is not an open cheque book, Ive said.As markets await more news from Greece, the focus will shift to a meeting of the Group of 20 industrial and developing nations in Mexico and a US Federal Reserve policy meeting later in the week, dealers said.