Euro rebounds in Asian trade

TOKYO: The euro rebounded against the dollar and yen in Asia on Friday after slipping against the greenback overnight in New York as eurozone finance ministers prepare for high-level debt talks.

The euro bought $1.3352 and 109.56 yen in Tokyo trade, compared with $1.3301 and 109.64 yen in New York.

The dollar edged down to 82.04 yen from 82.42 yen in New York.

Finance ministers from the 17-nation currency bloc meet on Friday and Saturday in Copenhagen to discuss expanding the eurozone's financial firewall by combining the European Financial Stability Facility, used to rescue Portugal, Ireland and Greece, with the permanent European Stability Mechanism.

The move would temporarily raise the size of the rescue mechanism to 940 billion euros ($1.25 billion), seen as necessary to stem market volatility tied to the eurozone's fiscal woes.

But member countries are divided over how much should be laid aside, with France and the European Commission eyeing near to a trillion euros in funds while Germany, Europe's top economy and paymaster, remains much more cautious.

Europe's partners from Washington to Tokyo and including groups such as the International Monetary Fund want to see the bloc ring-fenced as effectively as possible against a new crisis that would affect the world economy. (AFP)