Euro falls further in Asia after ECB rate cut

TOKYO: The euro faced selling pressure against the dollar on Friday after plunging in New York in response to the European Central Bank's surprise decision to cut interest rates and warn of a long period of low inflation.

The dollar managed to claw back some of the losses seen late on Thursday as better-than-expected US economic growth data fuelled speculation the Federal Reserve would soon wind down its stimulus drive stimulus programme.

In Tokyo midday trade, the euro bought $1.3406, compared with $1.3414 late in New York where it had briefly plunged below $1.33. The unit is well down from the levels above $1.35 seen in Tokyo earlier Thursday.

It also changed hands at 131.65 yen in Tokyo, against 131.50 yen on Wall Street but still well below levels above 133 yen on Thursday in Asia.

The dollar edged up to 98.17 yen against 98.02 yen in New York . However, the greenback fetched about 98.60 yen the day before.