TOKYO: The euro edged lower in Asian trade on Tuesday amid growing concerns over Spain's sovereign debt outlook ahead of bond auctions by Madrid, dealers said.
The euro bought $1.3122 and 105.62 yen in Tokyo morning trade, compared with $1.3143 and 105.64 yen in New York late Monday. The dollar was changing hands at 80.47 yen against 80.39 yen.
"Market focus looks set to remain in Europe," Mike Jones, currency strategist at Bank of New Zealand, said in a note.
"Spanish debt auctions tonight and on Thursday will be closely watched," Jones said. "Any evidence of waning demand for Spanish debt would see a heavy toll taken on the euro."
Spanish bond yields have surged in recent days as worries grow that the debt-strapped country may not be able to avoid a financial bailout.
Overnight euro-selling pressure was limited as the dollar lost ground after the US Federal Reserve index for manufacturing activity in New York marked a sharp decline this month, reflecting a surge in producers' input prices.
The Chinese yuan rose against the dollar Tuesday, the second day of trading after Beijing allowed its currency to move in a wider daily range against the greenback.
The dollar-yuan exchange rate was at 6.3010, down from 6.3150 late Monday, moving in tandem with the dollar's global weakness. (AFP)