Euro rangebound ahead of EU summit

TOKYO – The euro was rangebound against the dollar in Asia on Friday, as traders await an agreement between European leaders on a plan to contain the continent’s sovereign debt crisis.

The euro fetched $1.3783 in early Tokyo trade against $1.3772 in New York late Thursday. The European unit was flat at 105.80 yen compared to 105.81 yen.

The dollar was unchanged at 76.78 yen.

Dealers supported the euro despite bickering between France and Germany over how to boost the region’s 440 billion euro rescue fund, which made a solid deal unlikely at a summit set for Sunday.

The wrangling led the 17-nation eurozone to announce another summit for Wednesday, when leaders pledged to unveil a plan.

A joint statement by France and Germany released Thursday said the two countries will meet Saturday to prepare a “global and ambitious answer” to the crisis.

The two leaders showed their “complete agreement to put forward a global and ambitious answer” to the crisis, the statement said.

They have agreed that the answer “will be profoundly examined during the summit on Sunday so they can be definitively adopted by the heads of state and government during a second meeting on Wednesday at the latest,” it said.

Uncertainty over the eurozone sovereign debt problems has roiled global markets amid fears of another worldwide financial crisis.

“The market has been hurt after being swayed only by headlines while there is no substantial change in the situation,” said Dai Sato, senior dealer at Mizuho Corporate Bank.

“Market participants are taking a breather with few major trading clues expected during Asian trading hours. The rangebound trading may continue through to the second EU summit on Wednesday,” Sato said.