“US economic data have been weak, supporting the prospect of more monetary stimulus,” Ichikawa said. - File photo

 

TOKYO: The euro weakened in Asian trade on Wednesday as eurozone fears continued to weigh, while traders looked to a US Federal Reserve policy meeting for signs of further stimulus.

The common currency was changing hands at $1.2672 and 99.99 yen in Tokyo afternoon trade, easing from $1.2688 and 100.16 yen in New York late Tuesday.

The dollar was flat at 78.87 yen.

“Asian trade lacks direction,” said Yukihiro Ichikawa, manager at Hachijuni Bank's forex group. “Worries over immediate eurozone turmoil have receded after the Greek elections, where pro-austerity parties won.

“But the bottom-line trend of a weak euro has not changed. Greece will need more money sooner or later.”The euro rose overnight after a moderately successful, if expensive, Spanish bond auction.

The Tuesday sale saw Madrid raise 3.04 billion euros ($3.8 billion), beating a 2.0-3.0-billion-euro target and after worries about Spain spiked in the wake of a 100-billion-euro bailout to prop up its troubled banks.

However Spain still had to pay sky-high rates to lure investors -- 5.074 per cent for 12-month debt and 5.107 per cent for 18-month debt.

Markets were also eyeing the Fed's two-day policy meeting amid speculation it will launch further stimulus measures to spur the world's largest economy.

“US economic data have been weak, supporting the prospect of more monetary stimulus,” Ichikawa said.

The dollar was mixed against other Asia-Pacific currencies.

It fell to 42.11 Philippine pesos from 42.28 pesos a day earlier, to 55.95 Indian rupees from 55.99 rupees and to 1,152.10 South Korean won from 1,157.75 won while it was unchanged at Tw$29.86.

The greenback rose to 9,470.00 Indonesian rupiah from 9,430.00 rupiah, to Sg$1.2688 from Sg$1.2681 and to 31.49 Thai baht from 31.44.

The Australian dollar bought US$1.0182 against US$1.0125 while the Chinese yuan changed hands at 12.41 yen, from 12.42 yen.