Tokyo - The euro fell against the dollar in Asia on Thursday following softer Chinese trade data and ahead of a European leaders' meeting on a permanent rescue mechanism for debt-laden EU nations.
The single currency retreated to $1.3868 in Tokyo afternoon trade from $1.3906 in New York late on Wednesday. It fell to ¥114.99 from ¥115.07.
The dollar was at ¥82.83, up from ¥82.70.
After holding firm earlier in the day, the euro fell against the dollar on news that China posted its first trade deficit since March 2010.
"China's deficit news raises concerns about the global economy," a trust bank trader told Dow Jones Newswires.
"Currencies of countries with close trade relations with China (such as the euro and the Australian dollar) are being sold off."
The trade deficit of $7.3bn compared with a surplus of $6.45bn in January, and a surplus of $7.61bn in February last year, customs authorities said in a statement.
Customs blamed a sharp slowdown in exports on the Lunar New Year holiday which fell in early February, and analysts said the result was likely a blip on the radar screen that would not silence calls from abroad for a stronger yuan.
Global currency markets were largely flat on Wednesday as traders looked ahead to US trade and jobs data and amid unrest in Libya and eurozone debt worries.
At a summit in Brussels on Friday eurozone leaders will discuss plans for a permanent debt rescue system for member nations although most dealers anticipate an unimpressive outcome.
"Event risk for the euro is building with European leaders meeting... to start talks on producing a more robust response to the sovereign-debt crisis," said John Kyriakopoulos, currency strategist at National Australia Bank.
At a summit in Brussels on Friday eurozone leaders will discuss plans for a permanent debt rescue system for member nations although most dealers anticipate an unimpressive outcome.
The euro hit $1.4036 on Monday, its highest level since the start of November, after European Central Bank President Jean-Claude Trichet signalled that the ECB could hike rates in April.
Currency rates did not move much on a downward revision in Japan's gross domestic product for the last quarter of 2010 to a contraction of 1.3% from an earlier forecast of 1.1% shrinkage, dealers said.
The dollar was mixed against other Asian currencies.
The unit rose to Sg$1.2708 from Sg$1.2697 on Wednesday, to 1 121.10 Korean won from 1 115.85, to Tw$29.46 from Tw$29.35 and to 43.47 Philippine pesos from 43.42.
It fell to 8 777.50 Indonesian rupiah from 8 786.00 and to 30.30 Thai baht from 30.32.