Euro edges higher against US dollar


AFP

TOKYO–The euro edged up against the dollar in Asia on Wednesday but risk appetite was tempered by doubts about the scope of changes to Europe’s bailout fund and as a downgrade of Spain by Moody’s hit sentiment.

The European single unit edged up to US$1.3810 in Tokyo trade from US$1.3752 in New York late Tuesday. But the unit slipped to 105.91 yen from 105.66 yen. The dollar was trading at 76.76 yen, down from 76.81 yen. Sizeable buying by a major US bank helped the euro regain some ground after earlier falls against the dollar, an FX dealer at a major Japanese trust bank told Dow Jones Newswires. However, analysts warned of volatility as “the market continues to react very strongly on headlines,” HiFX Trading Director Mike Hollows said. The single currency was boosted overnight after Britain’s The Guardian newspaper reported on its website that the leaders of France and Germany have agreed to expand the eurozone rescue fund’s firepower and the recapitalisation of Europe’s banks.