Tokyo - The euro firmed slightly Tuesday after a senior Chinese official expressed support for measures taken by the European Union to tackle the eurozone debt crisis, dealers said.
The euro fetched $1.3172 in Tokyo afternoon trade against $1.3126 in New York late on Monday. The single European currency rose to ¥110.20 from ¥109.95.
The dollar eased to ¥83.64 from ¥83.78.
Chinese Vice Premier Wang Qishan said Tuesday that China supports the measures taken by the EU and the International Monetary Fund to aid financial stability in the eurozone, according to the Dow Jones Newswires.
Last week, EU leaders pledged to defend debt-plagued eurozone nations with a permanent bailout mechanism from mid-2013 - the successor to a temporary, IMF-backed trillion-dollar facility.
Greece and Ireland have both been bailed out by the EU and the IMF. Portugal, Spain, Belgium and even Italy are considered at risk by experts going into 2011.
But there was no decision to increase its size beyond the bloc's temporary €750bn fund, disappointing markets.
"It is in the fundamental interests of China and the EU to further strengthen mutually beneficial economic cooperation," Xinhua news agency quoted Wang as saying.
The comment prompted euro purchases on expectations of China's support for the currency, with Beijing holding massive euro-denominated reserves.
"The comment temporarily supported the euro but since the outlook (for EU bailout measures) remains murky, the market is unlikely to make big moves before Christmas," said Masatsugu Miyata, forex dealer at Hachijuni Bank.
The euro reached a new low against the Swiss franc on Monday, slumping below the 1.27 franc barrier for the first time as investors turned to Switzerland's safe-haven currency, analysts said.
Earlier in the day, the Bank of Japan decided to hold off any extra monetary easing following its easing in October to keep its key rate between zero and 0.1%.
Previously, BoJ officials "were pressed to take easing steps as the yen strengthened rapidly, but now that the yen has halted its rise for now, there is less urgency for them to act," Mizuho Securities chief market economist Yasunari Ueno said.
The dollar was generally weaker against other Asian currencies.
It dipped to $1.3158 Singapore dollars from $1.3206 on Monday, and was flat at 9,042.50 Indonesian rupiah. The dollar also edged down to $29.88 Taiwan dollars from $29.92, to 30.16 Thai baht from 30.21 and to 44.33 Philippine pesos from 44.40.