Euro inches lower in Asian trade

TOKYO: The euro inched lower in Asian trade on Tuesday amid political uncertainty in Europe, while the yen gained some ground as traders turn to the Japanese unit as a safe-haven currency.

The euro was buying $1.3148 in Tokyo morning trade, against $1.3154 in New York late Monday, while it inched lower to 106.67 yen, from 106.78 yen.

The dollar bought 81.14 yen, down slightly from 81.18 yen.

The euro would likely trade against the greenback in a $1.3050 to 1.3200 range in Asia on Tuesday due to a lack of fresh trading cues, said Osao Iizuka, head of currency trading at Sumitomo Mitsui Trust Bank.

Overnight, the unit took a hit on news that eurozone private sector activity in April sank at the fastest rate in five months, suggesting the 17-nation bloc faces a longer recession than previously thought.

Also taking a toll were the results of the first round of the French presidential election, with Socialist challenger Francois Hollande ahead of Nicolas Sarkozy.

Hollande has said he would move to renegotiate a fiscal pact agreed on by European leaders late last year, shifting the focus toward growth rather than austerity measures as a buffer against the eurozone debt crisis. (AFP)