Euro falls against dollar, yen in Asia

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Euro falls against dollar, yen in Asia

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The dollar was changing hands at 78.02 yen, down slightly from 78.12 yen.

24 September,2012 01:50 pm

The euro fell against the dollar and yen in Asia on Monday as risk appetite was dampened by uncertainty over the progress on Greek budget cuts to qualify for a new tranche of rescue cash, dealers said.The euro bought $1.2944 and 101.03 yen in Tokyo afternoon trade, down from $1.2985 and 101.42 yen in New York late Friday.Athens and its international lenders have still not reached agreement on a new round of austerity that will see it given more bailout money, Kengo Suzuki, forex strategist at Mizuho Securities, told Dow Jones Newswires.The risk sentiment-driven rally has begun to lose steam as profit-taking kicks in and uncertainty over Greece and Spain come back into the spotlight, Suzuki said, also referring to Madrids ongoing financial woes and need for a possiblebailout.Greece must present the troika -- the European Commission, the European Central Bank (ECB) and the International Monetary Fund -- with a multi-billion euro budget-cutting plan by Friday.The worries over Greece add to a string of weak data out of China, the United States and the eurozone.The euro will be under pressure as the ECB is expected to lower its key rate in November or in December, MasafumiYamamoto, chief currency strategist at Barclays Capital, said in a note to clients.The prospect of the eurozones economic recovery is still uncertain given the global economic slowdown, he said.Against other Asia-Pacific currencies, the dollar rose to 54.25 Indian rupees from 54.05 rupees on Friday, to 30.94 Thai baht from 30.84 baht and to Sg$1.2269 from Sg$1.2235.The greenback edged up to Tw$29.35 from Tw$29.33, to 1,119.75 South Korea won from 1,118.80 won, to 41.75 Philippine pesos from 41.67 pesos and to 9,560 Indonesian rupiah from 9,554 rupiah.Chinas yuan changed hands at 12.35 yen from 12.37 yen while the Australian dollar fell to $1.0423 from $1.0473.