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Euro falls in Asian trade on Greece's debt worries

Euro falls in Asian trade on Greece's debt worries

The euro lost more ground in Asian trade yesterday as worries deepened about the state of the European economies in light of Greece's debt woes, dealers said.
The European currency fell to US$1.3938 in Tokyo afternoon trade from US$1.3966 in New York late on Thursday, and to 125.33 yen from 125.56. The U.S. dollar edged up to 89.94 yen from 89.92.
The market has been spooked by Greece's deteriorating fiscal health and bloated budget deficit.
Prime Minister George Papandreou said Athens had not sought a bailout from its European Union partners, but the comments did little to calm market jitters.
"The issue is getting more serious than we thought," Mitsubishi UFJ Trust and Banking senior dealer Hideaki Inoue told Dow Jones Newswires.
Similar concerns over other European countries such as Portugal, where the government is pushing through an austerity budget, added to pressure on the euro, dealers said.
"It's not just Greece, but we have to also watch Portugal, Spain and Italy. What's worse, we don't know yet how these nations will work to improve (their) financial conditions," said Inoue.
The dollar was mixed against other Asian currencies, gaining to 1,156.65 South Korean won from 1,152.70 a day earlier, to 1.4055 Singapore dollars from 1.4032, to 33.12 Thai baht from 33.07 and to 46.66 Philippine pesos from 46.62.
At the same time it fell to 9,360.00 Indonesian rupiah from 9,375.00 and to NT$31.96 from NT$31.97.