TOKYO: The euro inched lower in Asian trade on Tuesday amid political uncertainty in Europe, while the yen gained some ground as traders turn to the safe-haven Japanese unit.
The euro bought $1.3151 in Tokyo afternoon trade, against $1.3154 in New York late Monday, while it slipped to 106.41 yen, from 106.78 yen.
The dollar fell to 80.91 yen, from 81.18 yen.
The European currency took a hit late Monday on news that eurozone private sector activity in April sank at the fastest rate in five months, suggesting the 17-nation bloc faces a longer recession than previously thought.
Also taking a toll were the results of the first round of the French presidential election, with Socialist challenger Francois Hollande ahead of Nicolas Sarkozy.
Hollande has said he would move to renegotiate a fiscal pact agreed by European leaders late last year, shifting the focus toward growth rather than austerity measures as a buffer against the eurozone debt crisis.
But the move may stoke friction with other nations, including Germany, amid ongoing efforts to get the eurozone's fiscal house in order, dealers said.
The French vote showed a deeply divided electorate 20.0 percent voted for far-right candidates with no clear sign of who will win a runoff in May.
Uncertainty about the French presidential race will continue to weigh on the euro, likely keeping it below the $1.3200 level, Osao Iizuka, head of currency trading at Sumitomo Mitsui Trust Bank, told Dow Jones Newswires.
In the Netherlands a breakdown in budget talks sparked the collapse of the government, with Prime Minister Mark Rutte submitting his resignation.
Investors were also looking to policy meetings by the US and Japanese central banks this week amid speculation of further monetary easing, dealers said.
The dollar was mostly higher against other Asian currencies, rising to 1,141.48 South Korean won from 1,138.65 won on Monday and to Tw$29.49 from Tw$29.48.
The dollar strengthened to 9,194.00 Indonesian rupiah from 9,180.00 rupiah, to 31.02 Thai baht from 30.93 baht and to 42.75 Philippine pesos from 42.61, but fell to Sg$1.2483 from Sg$1.2486.
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