Euro strengthens in Asian trade

TOKYO: The euro strengthened in morning Asian trade on Tuesday after worries about Greece and Spain dragged the embattled unit lower a day earlier, while the dollar inched up against the yen amid rosy US jobs data.

The European single currency bought $1.2982 and 101.70 yen against $1.2967 and 101.57 yen in New York late Monday, while the dollar was at 78.37 yen against 78.31 yen in US trading.

New eurozone concerns emerged as German Chancellor Angela Merkel headed to Athens for talks on Tuesday amid warnings over Greece's public coffers running dangerously low.

Markets also fretted over debt-riddled Spain's apparent reluctance to formally request a bailout.

The 500-billion-euro ($649 billion) European Stability Mechanism, the 17-nation eurozone's permanent bailout fund, was officially launched on Monday, but that step forward largely failed to calm concerns over the single currency.

Friday's US jobs data, meanwhile, showed a significant drop in the unemployment rate, helping the dollar.

The US Labor department said the jobless rate in the world's biggest economy dropped to 7.8 percent last month, the lowest since January 2009.

"I expect the (dollar-yen) pair to consolidate around the early 78-yen level for the time being," Citibank Japan chief strategist Osamu Takashima told Dow Jones Newswires.

Dealers would also keep an eye on the International Monetary Fund and World Bank's annual meetings, which kicked off in Tokyo on Tuesday.(AFP)