Euro mixed in Asia ahead of ECB meeting, US data

TOKYO: The euro was mixed in Asian trade Thursday morning with the market bracing for the outcome of a European Central Bank meeting later in the day and the release of US employment data on Friday.

The single currency bought $1.2597 in Tokyo trade, slightly down from $1.2600 late Wednesday in New York, while it was little changed at 98.81 yen against 98.78 yen in US trading.

The dollar strengthened to 78.44 yen from 78.38 yen.

"It's difficult to take positions before we see results of the two major events related to the euro and the dollar," said Yosuke Hosokawa, analyst with Sumitomo Mitsui Trust Bank, referring to the central bank meeting and US data.

Media reports said the ECB planned to re-enter sovereign debt markets with unlimited bond purchases in a bid to bring down debt-hit eurozone members' borrowing costs and prop up the embattled euro.

Critics led by Germany have warned that buying the debt of troubled nations in the 17-nation bloc would let them avoid painful austerity cuts crucial to repairing their fiscal health.

Speculation about the central bank's plans come amid growing concerns about the state of the global economy with recent poor manufacturing figures from the US, China and Europe weighing on hopes for a recovery.

Moody's lowering of its rating outlook on the European Union to negative from stable added to the gloom.