TOKYO: The euro held firm against the dollar in Asia on Thursday after dropping Wednesday on profit-taking triggered by the success of the European Central Bank's low-cost refinancing operation for banks.
The euro fetched $1.3340 and 108.28 yen in Tokyo morning trade, compared with $1.3325 and 108.11 yen in New York.
The market was awaiting news from European Union summit talks in Brussels on Thursday and Friday.
The euro, which had risen on expectations over the ECB's second batch of low-interest loans, sank Wednesday after the long-awaited refinancing met with strong demand -- nearly 530 billion euros ($706 billion) for 800 banks.
"The euro fell on a sell-the-fact move," a senior trader at a major Japanese trust bank said.
He said the euro may fall to around 1.3250 if it breaches technical support around 1.3300.
The dollar was changing hands at 81.18 yen against 81.12 yen in New York.
The greenback may rise further against the yen amid expectations that the US economy is recovering at a faster pace than expected, said Barclays Capital chief Japan strategist Masafumi Yamamoto.
He said the next item to watch was the US non-farm payrolls data due on March 9, and at least until then, "the dollar's tone will remain upward".
Federal Reserve chief Ben Bernanke said Wednesday that stagnant wages and unemployment were holding back the US economy, chilling a surge in optimism that came after the government raised its estimate for fourth quarter growth.
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