Euro holds firm as debt fears ease


AFP

TOKYO–The euro held steady in Asia on Thursday after the European Union called for an “urgent” recapitalization of banks, in a sign of progress in dealing with the European sovereign debt crisis.

The euro stood at US$1.3773 in Tokyo trade, slightly down from US$1.3788 late Wednesday in New York, where it breached US$1.38 at one point. The European single unit eased to 106.16 yen from 106.52 yen weighed by profit-taking and selling from Japanese exporters. The dollar inched down to 77.05 yen from 77.24 yen. The euro climbed on Wednesday after European Commission President Jose Manuel Barroso said European banks “urgently” need to recapitalize to weather the sovereign debt storm.