WSJ:WORLD FOREX: Euro Falls As Investors Focus On Finnish Vote
-- Investors focus on Finland's vote on expanding the European Financial Stability Facility
-- A positive outcome of the vote isn't assured
-- The dollar falls against yen as Japanese exporters sell
By Takashi Mochizuki
Of DOW JONES NEWSWIRES
TOKYO -(Dow Jones)- The euro fell against the dollar and yen in Asia Wednesday as some investors took a cue from the risk that Finland's vote on expanding a European bailout fund later in the day may have euro-negative consequences.
Dealers said some non-Japanese hedge funds sold the euro amid a thin Tokyo market, pushing the common currency down to $1.3566 and Y103.82 as of 0450 GMT, from $1.3584 and Y104.44 in New York on Tuesday.
Investors aren't assured of a rosy outcome when Finnish lawmakers vote later in the global day whether to approve beefing up the European Financial Stability Facility.
The legislators are expected to favor expansion, but there is no resolution in sight to a dispute over Finland's collateral demands in exchange for participating in a bailout for Greece. That leaves the risk investors will resume selling the euro if concerns about a Greek default flare again.
"We should be aware there could be some more euro-negative factors going forward," said Masafumi Yamamoto, chief Japan currency strategist at Barclays Capital.
Meanwhile, the dollar is at Y76.54, down from Y76.81 in New York. The ICE Dollar Index, which tracks the U.S. dollar against a basket of currencies, was at about 77.883 from 78.023.
Japanese exporters were behind the greenback's drop, as they repatriate money overseas ahead of their fiscal half-year end Friday, said Toshihiko Sakai, a senior dealer at Mitsubishi UFJ Trust and Banking.
Sakai noted the dollar may keep falling due to ongoing concerns about Europe's debt issues and the U.S. economic outlook.
Interbank Foreign Exchange Rates At 00:50 EDT / 0450 GMT
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