Euro falls in Asia on debt worries

TOKYO, Jan 29, 2010 (AFP) - The euro lost more ground in Asian trade Friday as worries deepened about the state of the European economies in light of Greece's debt woes, dealers said.

The European currency fell to 1.3939 dollars in Tokyo morning trade from 1.3966 in New York late on Thursday, and to 125.34 yen from 125.56. The dollar was flat at 89.92 yen.

The market has been spooked by Greece's deteriorating fiscal health and bloated budget deficit.

Prime Minister George Papandreou said Greece 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.

Source: AFP

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