Dollar stays below 80 yen after weak data - Economic Times

TOKYO: The dollar stayed weak against the yen in Asia on Tuesday after poor US economic data while holding steady against the euro amid worries over Spain and the eurozone.

The US unit fetched 79.86 yen in Tokyo midday trade, almost flat from New York where the greenback fell below 80.00 yen for the first time since February 24.

The euro bought $1.3243 and 105.76 yen against $1.3240 and 105.67 yen in New York.

"Currency markets continue to struggle for direction," National Australia Bank said in a note.

"Over the past few weeks, most of the major currencies have knocked around in sideways ranges as risk sentiment has ebbed and flowed. Overnight, a mild deterioration in risk appetite saw the US dollar and Japanese yen outperform," it said.

The dollar took a beating against the yen on Monday following weak US consumer spending data.

Poor figures from the US in recent days have put pressure on the dollar as US bond yields have been driven lower on increasing speculation that the Federal Reserve could embark on a new round of quantitative easing.

The Australian bank noted volumes and trading interest were relatively subdued reflecting the European May Day holiday, the start of a holiday-studded week in Japan, and month-end.

Japan's financial markets were closed Monday and are to be shut again Thursday and Friday.

Investor appetite also fell on news Spain was in a double-dip recession, stoking fears of another eurozone debt crisis.