Euro weakens in Asian trade


The euro weakened in Asian trade on Wednesday as worries about the eurozone continued to weigh while traders looked to a US Federal Reserve policy meeting for signs of further stimulus measures. The common currency was changing hands at $1.2670 and 99.97 yen in Tokyo morning trade, easing from $1.2688 and 100.16 yen in New York late Tuesday. The dollar was flat at 78.88 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 percent for 12-month debt and 5.107 percent for 18-month debt. Markets were also eyeing the Fed’s two-day policy meeting starting Tuesday, amid speculation that the bank will launch further stimulus, including chopping interest rates, to spur the world’s largest economy.