Dollar rises against euro in Asia trade

March 10, 2011 - 0:0
TOKYO (AFP) — The dollar has risen against the euro in Asia as oil prices eased, with the single currency overshadowed by renewed eurozone debt concerns, dealers have said. The euro retreated to $1.3887 in Tokyo morning trade from 1.3905 in New York late Tuesday. The single European currency rose to 115.02 yen from 114.91 yen. The dollar firmed to 82.83 yen from 82.64 yen. ""The dollar drew buybacks after suffering broad-based selling earlier on view that rising crude oil prices would be negative to the US economy,"" said Teppei Ino, analyst at the Bank of Tokyo-Mitsubishi UFJ. Saudi Arabia's assurances Tuesday that it would counter any disruptions of the global oil market pushed crude prices down Tuesday, giving a boost to the US stock market. The world's largest oil supplier, Saudi Arabia has 3.5 million barrels per day in spare capacity and is building up inventories in strategic locations, Oil Minister Ali Naimi said in a statement clearly aimed at calming markets. ""The Kingdom of Saudi Arabia has long been committed to promoting market stability in the interest of both producers and consumers, and in support of global economic growth and development,"" Naimi said. ""Saudi Arabia will continue to reliably meet the world's petroleum needs,"" he said. New York's main contract, light sweet crude for delivery in April, shed 39 cents to $104.63 per barrel. Brent North Sea crude for April delivery fell 36 cents to $112.70. After moving from $1.37 to $1.40 last week, the European common currency hit a four-month high of $1.4037 Monday amid positive expectations of a rate hike by the European Central Bank as early as April. But eurozone debt worries resurfaced after rating agency Moody's downgraded Greece's debt by three notches from Ba1 to B1. A Greek debt auction Tuesday was light on foreign bidders, noted Spiros Papadopoulos of National Australia Bank. The market is turning its focus back to the eurozone debt crisis ahead of the upcoming EU leaders' meeting, with dealers citing scope for a disappointing outcome. ""The prospect of anything constructive, material coming out of this in terms of dealing with the sovereign problems is low,"" Ron Leven of Morgan Stanley told Dow Jones Newswires. ""There's not a cohesive sense of mission in terms of dealing with this problem and that's going to hurt the euro,"" Leven said. On Friday, leaders of the 27-nation EU will meet in Brussels. A summit of the 17-nation eurozone also will be held to discuss the strengthening of national economic policies and the creation of a permanent rescue fund for member nations.