Euro firms ahead of European Central Bank meeting

TOKYO: The euro firmed in Asian trade on Thursday as markets waited to see what, if any, action the European Central Bank (ECB) takes on tackling the continent's debt crisis after a meeting later in the day.

The common currency bought $1.2245 and 96.10 yen in Tokyo midday trade, against $1.2223 and 95.91 yen in New York late Wednesday.

The dollar bought 78.51 yen against 78.44 yen, after the US Federal Reserve kept monetary policy unchanged but left the door open for additional stimulus.

"We are now waiting to see whether the ECB can put their money where their mouth is," said HiFX Senior Trader Stuart Ive.

"Obviously the overtones the ECB made last Thursday need to be followed through with action."

ECB chief Mario Draghi pledged unconditional support for Europe's single currency last week, sending stock markets soaring and sharply reducing pressure on Spanish borrowing costs which had shot to record highs.

The "ECB is ready to do whatever it takes to preserve the euro. And believe me it will be enough," Draghi said, sparking speculation that the bank was preparing to act, possibly by resuming purchases of eurozone sovereign bonds.

Hopes for easing by the US central bank were dashed Wednesday following a two-day policy meeting.

The Fed downgraded its view of the world's biggest economy, saying growth had slowed, but it held off launching a fresh round of economic stimulus.