Euro falls in Asia amid political turmoil
The euro weakened against the dollar and yen in Asian trade yesterday
as investors fretted over political uncertainty in Europe and its impact
on the common currency.
The euro bought $1.2975 and 103.48 yen in Tokyo afternoon trade, down
from $1.3005 and 103.84 yen in New York late Tuesday.
The dollar edged down to 79.75 yen from 79.84 yen in New York.
Political turmoil in Greece and policy differences between French
President-elect Francois Hollande and German Chancellor Angela Merkel
over how to tackle the eurozone’s debt crisis will continue to weigh on
the unit, said Sumino Kamei, senior analyst at the Bank of
Tokyo-Mitsubishi UFJ. The “political situation remains unclear,” Kamei
said. After Greece’s conservative New Democracy party failed to form a
government, attention has turned to the radical left-wing party Syriza,
which has said it would reject all austerity measures imposed under an
EU-IMF loan deal if it comes to power.
But Credit Suisse analyst Hiromichi Shirakawa said in a note that the
debt-ridden nation was unlikely to leave the eurozone even if Syriza
formed a government, although more fiscally healthy nations could
benefit from exiting the 17-nation bloc. - AFP |