TOKYO--The euro edged lower on Tuesday as traders moved to lock in profits from the unit's sharp overnight gains, but it was supported by stronger risk appetite on the back of healthier stock markets, said dealers.
The euro softened to US$1.3634 and 104.56 yen in Tokyo trade from US$1.3645 and 104.60 in New York late Monday. The dollar was flat at 76.67 yen.
Dai Sato, senior dealer at Mizuho Corporate Bank said recent “excessive pessimism” was receding on expectations of capital injections into European banks, following comments from the leaders of France and Germany.
French President Nicolas Sarkozy and German Chancellor Angela Merkel put on a united front after weekend talks in Berlin, and vowed a response to Europe's debt crisis within weeks.
The Australian dollar fetched 99.79 U.S. cents at 0130 GMT after edging above parity earlier in Asian trade for the first time since Sept. 22.
The “Aussie” hit an overnight high of 100.15 U.S. cents and was trading at 99.96 U.S. cents by 2150 GMT.
