Euro higher on dollar; yen falls on IMF comments

NEW YORK – The euro edged up against the dollar Tuesday but remained near its recent low as investors remained cautious over the direction of the eurozone ahead of Greek elections.

At 2100 GMT, the euro was trading at $1.2502 compared to $1.2482 late Monday.

The yen slipped as the International Monetary Fund warned of slower growth in Japan in 2013 and said the cloud of the eurozone’s problems had reached Tokyo.

“The intensifying strains in Europe highlight the significant downside risk to the outlook” for Japan, IMF deputy managing director David Lipton said.

The IMF also said it sees the yen as “moderately overvalued from a medium-term perspective.”

The dollar gained to 79.52 yen from 79.43 yen, while the euro pushed to 99.44 yen from 99.13 on Monday.

The British pound gained to $1.5569 from $1.5484.

The dollar bought 0.9606 Swiss francs, compared to 0.9621 francs.