Tokyo - The euro slipped against major currencies in Asia on Tuesday on risk-aversion amid a lack of cues, as Australia's central bank left interest rates unchanged citing current market turmoil.
The euro bought $1.2279 in Tokyo afternoon trade, down from $1.2314 in Tokyo on Monday afternoon. Markets in London and New York were closed Monday for public holidays, leading to an absence of strong trading direction.
The European single currency fell to
¥112.00 from ¥112.71. The dollar fell to ¥91.22 from ¥91.50.
Australia paused an aggressive series of interest rate rises on Tuesday, citing turmoil on global markets over Europe's debt woes which have raised the spectre of a "double dip" recession.
The Reserve Bank of Australia opted to leave rates on hold at 4.50%, deciding against a fourth straight quarter-point hike and the seventh since October.
Markets were also paying close attention to Japan's political landscape amid growing speculation that embattled Prime Minister Yukio Hatoyama may step down, dealers said, with the yen possibly facing downward pressure.
The premier's approval rate has plunged below 20% since he reneged on an election promise to move a controversial US airbase.
The move has led to the splintering of his ruling coalition, with the small Social Democratic Party quitting after Hatoyama fired its leader from his cabinet when she publicly refused to back his airbase decision.
Some analysts say there is a significant possibility that Hatoyama will resign ahead of the Upper House election expected to be held in July.
"Prime Minister Hatoyama's position is now seen as vulnerable," UBS strategist Gareth Berry told Dow Jones Newswires.
"Personal satisfaction ratings in opinion polls continue to fall, and several members of his parliamentary party have publicly suggested it may be time for a change of leadership."
Traders said comments by European Central Bank board member Christian Noyer had weighed on the euro and other currencies such as the Australian dollar in earlier trade on Tuesday.
Responses by central banks to recent financial crises "have been broadly successful", Noyer said in a speech in Seoul.
"In the period to come, however, steering the economy may prove more challenging and new risks can weigh negatively on the recovery underway," he said, calling for more action to prevent excessive risk-taking.
The dollar was stronger against other Asian currencies, gaining to 9,207 Indonesian rupiah from 9,168 on Monday and to $32.14 Taiwan dollars from $31.97.
The greenback also rose to $1.4034 Singapore dollars from 1.4012, to 32.53 Thai baht from 32.51 and to 46.44 Philippine pesos from 46.25.
- AFP