Euro holds firm on hopes for bailout fund

TOKYO: The euro firmed against the dollar and yen in Asia on Wednesday after European finance ministers boosted the powers of a bailout fund while there were also hopes of a deal for cash-strapped Italy.

The common unit traded at $1.3332 and 103.86 yen in Tokyo afternoon trade, up from $1.3317 and 103.66 yen in New York late Tuesday.

The dollar was at 77.88 yen, compared with 77.90 yen.

Eurozone finance ministers turned to the International Monetary Fund for more help to keep the monetary union together late Tuesday after they missed their goal of boosting their own bailout fund, the European Financial Stability Facility (EFSF), to one trillion euros from 440-billion euros.

However, they did manage to agree on fresh weapons for it, allowing the fund to guarantee 20-30 percent of potential losses incurred by investors who buy bonds of troubled governments. They also decided to create co-investment funds to allow public and private investors to participate in the EFSF.

The dollar eased against most other Asian currencies.

It fell to 1,138.90 South Korean won from 1,146.80 Tuesday, to Sg$1.2930 from Sg$1.2979, to Tw$30.32 from Tw$30.38, to 31.18 Thai baht from 31.33, and to 9,180.00 Indonesian rupiah from 9,200.00.

But it was up slightly at 43.62 Philippine pesos from 43.58. (AFP)