MD: Dollar remains around 78 yen, euro weak vs. dollar amid debt woes
TOKYO (Kyodo) -- The U.S. dollar remained around the 78 yen line Tuesday morning in Tokyo, while the euro stayed weak versus the dollar after European Central Bank President Mario Draghi's negative remarks about buying more eurozone bonds added to market concerns over the region's debt crisis.
At noon, the dollar traded at 78.02-03 yen against 78.00-10 yen in New York and 77.91-93 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.2998-3001 and 101.41-44 yen versus $1.2994-3004 and 101.37-47 yen in New York and $1.3008-3010 and 101.35-39 yen in Tokyo late Monday afternoon.
The dollar was range-bound amid thin trading in Tokyo, but its downside was somewhat supported amid growing geopolitical worries over North Korea after reports Monday that its leader Kim Jong Il has died, dealers said.
"It is possible the dollar will again climb to around 78.20 yen," said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.
The euro remained weak against the dollar after losing some ground in New York overnight on Draghi's negative remarks about more aggressive government bond purchases, dealers said.
EU finance ministers agreed Monday to provide 150 billion euros to the International Monetary Fund, but it did not help the single European currency to bounce back as it fell short of their initial goal of contributing 200 billion euros, Sakai said.
The dollar will likely continue to hold steady against its European and Japanese counterparts for some time amid concerns over both Europe's debt crisis and developments in North Korea, he added.