Euro edges down against dollar on profit-taking

TOKYO: The euro edged down against the dollar on profit-taking in Asia Friday, following its rally after Greece's approval of an austerity programme for averting debt default.

The single European currency fetched $1.4488 in Tokyo morning trading, compared with 1.4499 in New York late Thursday.

The yen lost ground after the Bank of Japan said in a quarterly Tankan survey Friday that the nation's business confidence plunged in the months following the March 11 earthquake and tsunami.

The euro firmed to 117.03 yen from 116.76 yen in New York and the dollar rose to 80.78 yen from 80.55 yen.

The Greek parliament on Thursday passed legislation implementing a 28.4-billion-euro ($40 billion) austerity package despite fierce clashes in Athens, in a desperate bid to avoid national bankruptcy.

The euro came under some adjustment after hitting a three-week high versus the dollar on Thursday, dealers said.

"Although the Greek debt problems have not been fundamentally resolved, concerns have eased for now after the parliament approval," said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.

The European Central Bank is scheduled to hold a policy meeting on July 7.

"The euro is expected to move on a firm tone on expectation for the ECB's rate hike next week," Kamei said.

Kamei also said the weak Tankan survey sent the yen broadly lower against other major currencies.

The survey from the central bank showed large manufacturer sentiment in June dropped to "minus nine" from "six" in March, a plunge of 15 points and the first negative reading in five quarters.

The market is now focusing on US ISM manufacturing data due out later in the day after stronger-than-expected manufacturing data in the Chicago region released Thursday improved sentiment for the dollar, dealers said. (AFP)