Euro falls against dollar

TOKYO: The euro eased against the dollar in Asian trade on Monday due to worries over Middle Eastern oil supplies sparked by ongoing turmoil in Libya, dealers said.

The euro fell to $1.3735 in Tokyo morning trade from 1.3749 in New York late Friday. The European unit was flat at 112.24 yen compared to 112.25 yen. The dollar fetched 81.72 yen, slightly up from 81.68 yen.

"Under the current global conditions, it's definitely euro-selling and dollar-buying," Soichiro Mori, chief strategist at IG Markets Securities, told Dow Jones Newswires. "But we have to be on high alert versus the dollar's moves against the yen on the recent weakening tone in the US Treasury yields," Mori said.

Gen Kawabe, dealer at Chuo Mitsui Trust and Banking, said: "The market is closely watching the situation and risk factors in the Middle East."

High oil prices put pressure on the euro. World oil prices edged upward Friday as worries persisted that escalating unrest in the oil-rich Middle East and North Africa might choke supply.

Brent North Sea crude for delivery in April gained $1.28 to $113.42 per barrel while New York's main contract, light sweet crude for April delivery, rose $1.66 to $99.54 a barrel. The New York contract for West Texas Intermediate oil had hit $103.41 on Thursday, a level last seen in September 2008, and Brent came close to $120 before Saudi Arabia assured markets that it was ready to boost supplies.

The euro's fall came after it increased late last week on expectation that the European Central Bank would soon move to raise rates. "The euro faced some adjustments after being bought too much on rate hike expectations, while the outcome of the Irish general election weighed on the currency," Kawabe said.(AFP)