Euro, US dollar stay flat in trading


AFP

TOKYO–The euro was rangebound against the dollar in Asia on Friday, as traders await an agreement between European leaders on a plan to contain the continent’s sovereign debt crisis. The euro fetched US$1.3787 in Tokyo afternoon trade against US$1.3772 in New York late Thursday. The European unit was flat at 105.83 yen compared to 105.81 yen. The dollar stood at 76.76 yen, little changed from 76.78 yen. Dealers supported the euro despite bickering between France and Germany over how to boost the region’s 440-billion-euro rescue fund, which made a solid deal unlikely at a summit set for Sunday.

The wrangling led the 17-nation eurozone to announce another summit for as late as Wednesday, when leaders pledged to unveil a plan. A joint statement by France and Germany released Thursday said the two countries will meet Saturday to prepare an answer to the crisis. The two country’s leaders showed their “complete agreement to put forward a global and ambitious answer” to the crisis, the statement said. The answer “will be profoundly examined during the summit on Sunday so they can be definitively adopted by the heads of state and government during a second meeting on Wednesday at the latest,” it said. Uncertainty over the eurozone sovereign debt problems has roiled global markets amid fears of another worldwide financial crisis.