Euro weak on persistent debt woe

TOKYO: The euro was held below $1.30 in Asian on Tuesday after falling in New York on persistent concerns over Europe's debt problems and the health of the German economy.

The single currency fetched $1.2935 and 100.71 yen in Tokyo morning trade, marginally up from $1.2928 and 100.63 yen in New York late Monday.

The dollar was unchanged at 77.83 yen.

Economists warned that Germany, the eurozone's key economic driver, is heading for recession after its closely-watched Ifo institute business survey dropped in September for the fifth month running, and to its lowest level since February 2010.

Adding to market jitters is Spain's prevarication in asking for a bailout, which National Australia Bank said in a note was "evidently driven by domestic political considerations" and weighed on the single currency.

NAB added that this would limit immediate prospects for a recovery back above $1.3000.

Spanish Prime Minister Mariano Rajoy faces a decision on whether to ask for a wider rescue package, following a 100 billion euro bailout in June for the nation's banks.

Uncertainty as to whether Spain will request a sovereign bailout is "highly risky" and potentially more costly than a quick decision either way, European Union Competition Commissioner Joaquin Almunia said Monday.