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The Today's News

Euro mixed in Asian trade

TOKYO: The euro was mixed in Asia on Wednesday after two eurozone bond auctions buoyed the embattled unit amid rising speculation that the European Central Bank (ECB) would restart a bond-buying programme. The European common currency bought $1.2556 and 98.69 yen in Tokyo morning trade, against $1.2565 and 98.68 yen in New York on Tuesday. The dollar was at 78.60 yen from 78.49 yen in US trade. Weak German business confidence data had weighed on the euro earlier this week, but the currency won some support after two debt auctions on Tuesday saw hard-hit Spain and Italy pay sharply lower borrowing rates. The results came as currency traders become increasingly convinced that the ECB would re-start purchases of debt issued by hard-hit eurozone countries, part of a bid to help bring down their sky-high borrowing costs. The euro could test the $1.26 level on central bank speculation, said Kengo Suzuki, a forex strategist at Mizuho Securities. "In the short term, charts signal an upward bias for the euro. So the pair is likely to test 1.2600," Suzuki said. Traders have kept a close eye out for signs of fresh monetary easing measures by the US Federal Reserve, with their attention focused on a speech Fed chairman Ben Bernanke is to deliver at an economic symposium on Friday.