Euro firms in Asia but eurozone fears weigh

TOKYO: The euro firmed in Asian trade Friday after Cyprus banks re-opened following a nearly two-week lockdown, while upbeat German data lent support to the embattled unit.

Cypriots stayed calm on Thursday as the banks opened their doors again, with the first capital controls of their kind in the 17-nation eurozone saving the country from a catastrophic bank run.

In morning Tokyo trade the single currency fetched $1.2820, a modest gain from $1.2814 in New York late Thursday, while it bought 120.71 yen from 120.64 yen.

The dollar was at 94.14 yen, from 94.12 yen in New York, ahead of a Bank of Japan meeting next week that is expected to see the launch of more aggressive easing by the central bank.

The euro's rebound was limited as analysts said the Cyprus crisis was still not over and as Italian politicians struggled to produce a governing coalition amid more strains on the economy.

Markets would also be looking to next week's meetings of the European Central Bank and Bank of England, dealers said.

Euro sentiment won a measure of support from a better-than-expected report on German retail sales, which gained 0.4 percent in February from a month earlier.