Euro holds steady on EU summit news

2012-10-19 07:47

Tokyo - The euro held steady in Asian on Friday after news that European Union leaders had clinched a deal on setting up a banking union despite differences between heavyweights France and Germany

The unit bought $1.3062 and ¥103.61 in Tokyo early afternoon trade, compared with $1.3067 and ¥103.60 in New York late on Thursday.

The dollar was at ¥79.33 against ¥79.28 in US trade.

EU leaders began two-day talks in Brussels on Thursday amid hopes for progress in fighting the debt crisis.

By the early hours of Friday morning they had an agreement, of sorts, on bringing banks under bloc-wide supervision next year, but failed to pin down an exact date - dashing hopes of a quick move towards a full banking union.

European Commission spokesperson Olivier Bailly said there had been an "agreement on a political framework for the end of 2012 and a gradual implementation in 2013".

France has been pushing for a quick start to the supervision, but Germany is reluctant to rush in.

The talks had begun with markets appearing less jittery, but also against a backdrop of fresh violence in Greece, the origin of the three-year debt crisis, where a man died during a general strike and anti-austerity protests.

Eurozone leaders hailed Greece's achievements in carrying out reforms aimed at getting its economy back on track and urged Athens to keep up efforts to stay in the eurozone.

"Good progress has been made to bring the adjustment programme back on track," a statement by the leaders of the 17-nation bloc said.