SINGAPORE: The euro dived below $1.27 in Asia on Monday as traders flocked to the dollar following a slew of positive US economic data amid persistent eurozone worries, analysts said.
The euro dropped to a low of $1.2665 in early trade before recovering slightly to $1.2695 at 0135 GMT, a level sharply lower than Friday's rate of $1.2792 in New York.
The European currency also slumped to 97.72 yen as compared with 98.71 yen on Friday, while the US dollar traded at 77.00 yen from 77.24 yen.
"(The) euro declined to a near 16-month low versus the dollar after data showed an impressive US labour market," Phillip Futures said in a report.
US nonfarm payrolls data released on Friday showed a 200,000 job gain in December -- sharper than analyst expectations of a 150,000 rise -- as well as the unemployment rate dropping to a 35-month low of 8.5 percent.
Stronger US economic data would persuade traders to purchase the greenback ahead of other currencies in anticipation of a rise in its value in tandem with the country's economic prospects.
The euro was also beset by worries that eurozone leaders may not be able to come up with concrete measures to resolve the region's debt troubles in their meetings this week, DBS Group Research said in a report.
"The tone for the euro remains weak into the ECB meeting on January 12," it said, referring to the European Central Bank.
"Today's meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy is unlikely to deliver any surprises."
Meanwhile, a litany of bad news from Spain and Italy on their stalled economies and strained public finances is driving fears that they could be next to need EU-IMF bailouts after Greece, Ireland and Portugal.
A warning by International Monetary Fund chief Christine Lagarde that the IMF will cut its 2012 growth forecasts added to the negative tone, while her remarks that the euro was unlikely to "vanish" this year only stoked concerns about the currency.
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