-- Japan's Fin Min Azumi expresses concern about euro's recent weakness versus yen, adding he wants to carefully examine exchange rate
By Kosaku Narioka
Of DOW JONES NEWSWIRES
TOKYO (Dow Jones)--The euro rose versus the dollar and the yen on Tuesday in Asia as stronger-than-expected figures for China's gross domestic product triggered covering of positions betting on a further decline in the common currency.
China's GDP growth slowed slightly in the fourth quarter, marking an 8.9% rise from a year earlier in the fourth quarter, slower than the third quarter's 9.1% expansion, but higher than the 8.6% growth expected.
The ascent of the euro against the dollar and yen led to the execution of loss-cutting orders placed by market participants betting on a further decline in the single currency, driving the euro even higher, Tokyo dealers said.
Still, in the longer-term, the downward trend in the euro is unlikely to change as the euro zone's economic outlook remains murky and persistent expectations for additional rate cuts by the European Central Bank in coming months, they said.
The market's near-term focus is on Greek debt restructuring talks and auctions by Spain, Greece and the euro zone's bailout facility, the European Financial Stability Facility, which was downgraded Monday by Standard & Poor's to double-A-plus from triple-A.
"Jittery trading will likely continue regarding (European) tenders," said Sumino Kamei, senior analyst at Bank of Tokyo-Mitsubishi UFJ.
"A sound outcome at a single auction alone won't lead to an overall resolution (of the European sovereign debt crisis)," said Shuichi Kanehira, head of FX spot trading at Mizuho Corporate Bank. "The broader trend is unlikely to change."
Meanwhile, Japan's Finance Minister Jun Azumi on Tuesday reiterated his concerns about the euro's recent weakness versus the yen, but added he still wants to "carefully" examine the exchange rate, suggesting Tokyo isn't likely to act anytime soon to support the embattled European currency.
Azumi also played down S&P's move Monday to downgrade the euro-zone bailout fund.
"I don't think this will immediately shake the credibility of EFSF bonds," he said.
The euro was at $1.2728 as of 0450 GMT from $1.2666 late Monday in North American trading, according to EBS. The common currency was at Y97.66 from Y97.25.
The U.S. dollar was at Y76.73 from Y76.78 and was at CHF0.9506 from CHF0.9543. The U.K. pound was at $1.5366 from $1.5337.
The ICE Dollar Index, which tracks the U.S. dollar against a basket of currencies, was at 81.129 from 81.460.
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