Euro stays stable in Asia amid concerns over Irish crisis


AFP

TOKYO — The euro was rangebound in Asian trade Monday despite concerns about the fall-out from Ireland’s debt woes, after Europe signaled readiness to bail out the nation, analysts said.

The euro bought US$1.3681 in Tokyo afternoon trade, slightly easing from US$1.3696 in New York late Friday. The single currency fell to a six-week low of US$1.3606 last week. The euro rose to 113.11 yen from 112.98. The dollar was quoted at 82.68 yen, up from 82.54 yen in New York. “Investor sentiment towards the euro is calm compared to last week’s slightly panicky tone,” said Masatsugu Miyata, a forex analyst at Hachijuni Bank. “Although there is no clear sign of a significant improvement to the situation.”

The single European currency was volatile last week amid fears over the debt of smaller economies, mainly Ireland, where the government’s rising cost of bond purchases sparked rumors it might need a bailout. Tension slightly eased after EU heavyweights Britain, France, Germany, Italy and Spain issued a joint declaration Friday insisting that a future bailout fund would not cause heavy losses to investors. The U.S. dollar firmed against yen, with not much impact seen from positive economic growth data released on Monday. The dollar rose against other Asian currencies. It firmed to 8,949.25 Indonesian rupiah from Friday’s 8,895, to 43.95 Philippine pesos from 43.85, and to 1.3040 Singapore dollars from 1.2977. The greenback also advanced to 30.28 Taiwan dollars from 30.17, to 29.96 Thai baht from 29.81, and to 1,129.90 South Korean won from 1,108.90.