Publications
Partners
Tokyo - The dollar held firm against the euro in Asia on Thursday as profit-taking hit the European currency after its rise to three-month highs, and as risk aversion set in amid tension in Egypt, dealers said.
The euro fetched $1.3809 in Tokyo morning trade, unchanged from New York late on Wednesday but down from a near-three-month high of $1.3862 touched there in earlier trading.
The euro traded at ¥112.65, flat from New York late on Wednesday. The dollar changed hands at ¥81.54, also unchanged from New York.
The dollar regained ground in New York after Ireland's credit rating was downgraded one notch by Standard & Poor's, casting a shadow over the eurozone economy, and on safe haven buying amid heightened tension in Egypt.
The euro may fall to $1.3760 on Thursday as investors are likely to buy the dollar after better-than-expected US private-sector jobs data on Wednesday, said Satoshi Tate, senior dealer at Mizuho Corporate Bank.
The euro will also be hit by profit-taking ahead of the closely watched government non-farm payrolls data due on Friday, he told Dow Jones Newswires.
"They are likely to take profits after recent gains in the pair (euro/dollar) ahead of the non-farm payrolls," he said.
Payrolls firm ADP said on Wednesday that private businesses in the United States added 187 000 jobs in January, starting the year with gains across major industries.
The ADP report came amid concerns that high unemployment will continue to hold back the economy's struggling recovery through the year.
Tate added the euro would get support from continuing speculation of potential rate hikes in the eurozone.
S&P on Wednesday reduced its short- and long-term debt ratings for Ireland by one notch, citing concerns about the health of its banking sector.
It simultaneously lowered ratings on four Irish banks - Allied Irish Banks, Anglo Irish Bank, Bank of Ireland and Irish Life & Permanent.
The move cast a cloud on eurozone efforts to shore up its weakest economies through the sovereign debt-buying of the Luxembourg-based European Financial Stability Facility.
