Debt fears weigh on euro in Asia

TOKYO: The euro continued its downward march in Asia on Thursday as traders moved out of the common currency of the debt-ridden continent ahead of a possible French downgrade.

The unit fetched $1.2923 and 99.12 yen in Tokyo morning trade, down from $1.2941 and 99.28 yen in New York late Wednesday.

The dollar was flat at 76.70 yen.

There were lingering concerns over potential eurozone sovereign downgrades ahead of a French bond auction later in the day, said a senior dealer at a major Japanese trust bank.

The euro could fall to its December 29 low of $1.2858 in the near term although massive euro-short positions mean there is a chance of sudden buybacks, the dealer said.

The euro may fall to $1.2860 later Thursday as "temporary risk-on trading since the beginning of the year is losing steam as European stock indexes fell broadly Wednesday," she said in a note.