Updated on
Summary The euro slipped in Asian trade on concerns Spain's troubled banks may need a bigger bailout.
Meanwhile, the greenback had a slight boost after moves by the US Federal Reserve to power the economy.The euro dipped to $1.2664 and 100.83 yen in Tokyo morning trade from $1.2702 and 100.97 yen in New York late Wednesday.The dollar edged up to 79.60 yen against 79.49 yen in US trading.Markets are growing increasingly worried that an audit of Spanish lenders will show a recent multi-billion dollar loan to shore up the nations troubled banks may not be enough, said a senior dealer at a major Japanese bank.Our banks internal research shows Spanish banks have a huge amount of bad mortgage loans and real estate, so its possible that the audit will negatively surprise the market, he told Dow Jones Newswires.Earlier this month, Spains eurozone partners agreed to lend up to 100 billion euros to save a bank sector laden with bad loans extended during a real estate bubble that imploded in 2008.On Wednesday, the US central bank extended a bond-swapping programme by six months, aimed at pushing down longer-term borrowing costs and stimulating the worlds biggest economy.But the Fed provided no hint of further quantitative easing steps while saying it stood ready to do more to help the US economic recovery.Any further upside for the dollar from the Feds move was limited, the bank dealer said.Madrid is expected to transmit an official request for the bank aid to its partners at a eurozone finance ministers meeting in Luxembourg on Thursday, a European Union diplomat said in Brussels.The size of the request will depend on two independent audits on Spanish banks that are expected to be finalised on Thursday.
