Euro stronger in Asian trade

FILE PHOTO

TOKYO – The euro strengthened in Asia on Tuesday morning in thin holiday trade while dealers looked ahead to a string of US and eurozone data for hints about the state of the global economy.

The common currency changed hands at $1.2344 and 96.81 yen in Tokyo trade, from $1.2333 and 96.55 yen in New York late Monday.

The euro’s rise against the dollar follows a successful Italian debt auction and a smaller-than-expected contraction in Greece’s second-quarter gross domestic product, analysts said.

The dollar bought 78.42 yen, against 78.32 yen, with speculation growing that Japanese authorities would intervene in currency markets in a bid to tame the yen’s surge.

The dollar will likely trade in a narrow range against the yen Tuesday with markets quiet over Japan’s week-long Obon summer holiday, said Kengo Suzuki, a forex strategist at Mizuho Securities in Tokyo.

“I think the (dollar/yen) pair may start feeling heavy around 78.50-78.55,” with few leads to push the greenback higher, he told Dow Jones Newswires.

The dollar was also getting support from importers buying the unit, said Daisaku Ueno, senior foreign exchange and fixed income strategist at Mitsubishi UFJ Morgan Stanley.

Eyes will be on Europe later in the day, with France and Germany due to release growth data, while in the United States retail sales will provide an indication of how strong the world’s number one economy is.