Euro remains pressured by Spain, Greece worries

TOKYO: The euro was mixed in Asia on Thursday with investors seeking refuge in the safe-haven yen as anti-austerity protests in Spain and Greece raised fresh concerns over the eurozone debt crisis.

The euro bought $1.2876 and 100.00 in Tokyo afternoon trade, compared with $1.2870 and 100.04 yen late Wednesday in New York where the common currency lost ground because of risk aversion.

The dollar changed hands at 77.62 yen against 77.70 yen.

However, traders were reluctant to sell the euro aggressively against the yen owing to expectations that Spain will formally request a bailout, said a senior dealer at a Japanese bank.

"While the topside remains limited, we need further euro-negative factors to push it down below $1.2830 around the 200-day moving averages," the dealer told Dow Jones Newswires.

Citibank Japan chief strategist Osamu Takashima said traders remained risk-averse after European bond markets saw borrowing costs rise for weak nations Wednesday while global stock markets seemed to have hit their peaks.

Tensions over harsh austerity measures have also spilled on to the streets of Spain and Greece.

Thousands of protestors rallied near the Spanish parliament for a second straight night Wednesday after a rough day on the markets again raised the likelihood of a full bailout and deeper economic pain.