Tokyo - The euro was bought back against the dollar in Asia
on Tuesday after being sold on a string of negative news highlighting concern
about European sovereign debt woes.
The euro fetched $1.4062 in Tokyo afternoon trading, up from
$1.4047 in New York late on Monday. The single European currency fell to
¥115.06 from ¥115.13. The dollar fell to ¥81.81 from ¥81.96.
Dealers said the European unit attracted position-adjustment
purchases against the dollar following its fall to a two-month low overnight.
"A series of bad news prompted investors to shun the
euro amid rekindled worries about deep-rooted debt problems," said Teppei
Ino, analyst at the Bank of Tokyo-Mitsubishi UFJ.
"While selling of the euro calmed somewhat in Tokyo
trading hours, the unit is seen to stay under pressure."
Fitch Ratings on Friday slashed Greece's credit rating by
three notches to B+, citing its growing problems in getting its public finances
The news came amid lingering speculation that Athens might
have to restructure or reschedule its mounting debt.
Meanwhile Standard & Poor's lowered its outlook for
Italy from "stable" to "negative."
HiFX Head of Trading Mike Hollows told Dow Jones Newswires
that there is concern about contagion effects and "potential risks as
rating agencies seem to be picking off sovereign nations one by one".
Meanwhile rising concerns emerged on Monday over the state
of the European economic recovery - with key indicators slowing sharply.
London-based research giant Markit's composite eurozone
index for manufacturing and services output suggested eurozone growth slowed to
a seven-month low in May.
The dollar firmed against other Asian currencies, rising to
Sg$1.2472 from 1.2446 on Monday, to 1 093.78 Korean won from 1 093.10 and to
Tw$28.90 from 28.86.
The unit also gained to 8 570.25 Indonesian rupiah from 8
556.00, to 30.40 Thai baht from 30.35 and to 43.40 Philippine pesos from 43.34.