Euro weak on persistent debt woe

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Euro weak on persistent debt woe

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The dollar was at 77.78 yen against 77.83 yen.

25 September,2012 03:00 pm

The euro was held below $1.30 in Asian on Tuesday after falling in New York on persistent concerns over Europes debt problems and the health of the German economy.The single currency fetched $1.2934 and 100.62 yen in Tokyo afternoon trade, compared with $1.2928 and 100.63 yen in New York late Monday.Economists warned that Germany, the eurozones key economic driver, is heading for recession after its closely-watched Ifo institute business survey dropped in September for the fifth month running, and to its lowest level since February 2010.Adding to market jitters is Spains prevarication in asking for a bailout, which National Australia Bank said in a note was evidently driven by domestic political considerations and weighed on the single currency.NAB added that this would limit immediate prospects for a recovery back above $1.3000.Spanish Prime Minister Mariano Rajoy faces a decision on whether to ask for a wider rescue package, following a 100 billion euro bailout in June for the nations banks.Uncertainty as to whether Spain will request a sovereign bailout is highly risky and potentially more costly than a quick decision either way, European Union Competition Commissioner Joaquin Almunia said Monday.Against other Asia-Pacific currencies, the dollar fell to 53.46 Indian rupees from 54.25 rupees on Monday, to 30.93 Thai baht from 30.94 baht, to Tw$29.33 from Tw$29.35, to 1,118.58 South Korea won from 1,119.75 won and to 41.72 Philippine pesos from 41.75 pesos.The greenback was unchanged at Sg$1.2269 while rising to 9,574 Indonesian rupiah from 9,560 rupiah.Chinas yuan changed hands at 12.31 yen against 12.35 yen while the Australian dollar edged up to $1.0433 from$1.0423.