MDN: Euro gains vs. dollar, yen in Tokyo on reduced eurozone concerns
TOKYO (Kyodo) -- The euro gained against the U.S. dollar and the yen Friday in Tokyo, with fears about eurozone debt problems receding to some extent on favorable bond auctions in Spain and Italy.
At 5 p.m., the euro traded at $1.2860-2862 and 98.61-65 yen versus $1.2809-2819 and 98.32-42 yen in New York and $1.2708-2709 and 97.79-83 yen in Tokyo at 5 p.m. Thursday.
The dollar fetched 76.68-70 yen against 76.70-80 yen in New York and 76.95-96 yen in Tokyo late Thursday afternoon.
It moved between 76.68 yen and 76.85 yen, trading most frequently at 76.79 yen.
The euro strengthened further against the dollar and the yen in Tokyo after it was buoyed by favorable bond auction results in Spain and Italy overnight and European Central Bank President Mario Draghi offered a somewhat positive outlook for the eurozone economy, dealers said.
"As Italian and Spanish bond auctions went smoothly, investors who had been stepping up euro selling bought back the currency," said a senior dealer at a major Japanese bank.
In a news conference after an ECB policy meeting Thursday, Draghi said downside risks remain in the region's economy and did not rule out the possibility of further monetary easing, but also said there were "tentative signs" of "stabilization in activity at low levels."
"Due to recent concerns about the eurozone economy, there were many who had expected his remarks would be dovish," said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow. "But they were not that pessimistic, prompting buying of the euro."
But further gain for the euro is likely to be limited, as other concerns remain, such as a possible downgrading of France's sovereign debt by rating agencies including Standard & Poor's Ratings Services and unclear prospects about Greece's debt reduction efforts, Sakai said.
Meanwhile, the dollar edged down toward the mid-76 yen level in Tokyo after falling slightly against the Japanese currency in overseas trading.
Participants are becoming reluctant to buy the U.S. currency following weaker-than-expected U.S. economic data overnight including weekly jobless claims as well as retail sales data for December, dealers said.
Some participants forecast the Federal Reserve will retain a cautious view on prospects for the U.S. economy, prompting it to hammer out monetary easing steps, some dealers said.
