Euro eases in Asian trading

TOKYO: The euro eased slightly in Asia on Thursday as a downgrade of Greek debt and poor eurozone data weighed on sentiment, while the yen continued to be sold on speculation of more central bank easing.

In morning Tokyo trade, the single currency bought $1.3051, from $1.3064 in New York late Wednesday, while it fetched 107.65 yen from 107.71 yen.

The dollar traded at 82.48 yen, from 82.42 yen.

On Wednesday, Standard & Poor's cut Greece's already junk-level debt rating to "selective default" after the country launched an operation to buy back debt at a big discount as part of a rearranged bailout plan.

Economic reports also showed private-sector business activity in the eurozone declined in November, while consumers cut their spending in stores for the third straight month in October.

Traders are keeping a close eye on a European Central Bank policy board meeting later Thursday, with expectations it will lower its growth forecasts for the eurozone, though it is not expected to take any action on rates.

Markets are pricing in further Bank of Japan easing as the country goes to the polls on December 16 with main opposition leader Shinzo Abe, widely tipped to become the next prime minister, vowing to push for more aggressive easing.

The dollar won support from the ISM services index for November, which showed a slight pickup in the vast sector's growth, after its manufacturing index released this week showed a monthly contraction.