Euro Under Pressure in Asia on Weak Data
TOKYO: The euro was under pressure in Asian trade Tuesday, weighed by a European Central Bank interest rate cut and poor data from the eurozone.
The ECB cut its key rates to an all-time low on Thursday and bank chief Mario Draghi said the institution may launch further easing if the 17-nation bloc's economy does not improve.
The bank lopped off a quarter-point to a record 0.50 percent as part of efforts to boost demand and drag the debt-stricken eurozone out of recession.
The decision and Draghi's comments came after Tokyo financial markets closed for a holiday weekend.
A leading European indicator of business activity, the Markit purchasing managers index, showed continued contraction in the eurozone in April, with powerhouse Germany registering its first decline since November.
The dollar meanwhile benefited from a surprisingly strong US jobs report for April on Friday, boosting hopes for the world's largest economy which has seen a mixed bag of indicators lately.
The US Labor Department on Friday reported the US economy added 165,000 jobs in April, and revised sharply upwards its numbers for the previous two months, helping to send the unemployment rate down to 7.5 percent.
In afternoon Tokyo trade on Tuesday, the greenback fetched 99.05 yen, weaker than 99.31 in New York Monday but well above the 97-yen range on pre-holiday May 2 trading.
The euro traded at $1.3079 and 129.56 yen Tuesday morning against $1.3074 and 129.87 yen in US trading.
