TOKYO, May 25, 2012 (AFP) - The euro remained under pressure in Asian trade on Friday as markets fretted over Europe's economy and fears Greece will become the first nation to bounce out of the embattled eurozone.
The single currency, which hit a 22-month low of $1.2515 on Thursday, bought $1.2537 and 99.89 yen in Tokyo morning trade, against $1.2532 and 99.74 yen in New York late Thursday.
The dollar was trading at 79.66 yen against 79.59 yen.
Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ, said the euro would likely move in a narrow band Friday with few immediate trading cues and as dealers adjust their positions ahead of the weekend.
Data on Thursday showed Britain's recession was worse than first thought while weak economic data in continental Europe has doused any hopes for a quick recovery as leaders struggle to solve the region's debt woes.
The euro has been weighed by concern that debt-hit Greece, which is facing fresh elections next month, may exit the 17-nation eurozone amid a wave of anti-austerity sentiment.
On Friday, Japan's Finance Minister Jun Azumi reiterated concerns that Europe's problems will keep the yen strong, which hurts the nation's exporters by making their products more expensive overseas and weighs on equity markets.
"(Next month's re-elections in Greece) will be key," Azumi told reporters.
"Until then, few investors may see Europe as a safe place to put their money. This is an impediment to global economic growth and is not having a good impact on the Japanese stock market and the yen," he added.
Junichi Ishikawa, forex analyst at IG Market Securities in Tokyo, warned that euro would likely move downward in the mid-to-long term, possibly treading the $1.2250 level.
"There are various events coming up, like the Irish referendum to ratify the European Stability Treaty on May 31 and legislative elections in France in June," which could be risk factors for the euro, he added.
Ireland is to vote on the EU fiscal pact despite calls by new French President Francois Hollande to rework the treaty and a new emphasis on growth in the European economy over austerity measures.
bur-mis/pb/dan
