Dollar and euro trade in tight range in Asia

The dollar and the euro traded in a tight range in Asia yesterday, amid continued caution over international efforts to stem the European debt crisis. The euro stood at $1.3011, up slightly from $1.2996 in New York Monday, and at 101.48 yen, a tad firmer from 101.37 yen in New York. The dollar was 77.97 yen, nearly unchanged from 78.02. The market had shown a muted reaction to the death of North Korean leader Kim Jong-il, Japanese finance minister Jun Azumi told reporters, adding that it was not year clear whether the news will have any lasting impact on the market. Investors' focus remained on the lingering worries over the Eurozone sovereign debt crisis and fears that Europe may slip into another deep recession, said Osao Iizuka, head of FX trading at Sumitomo Trust & Banking. He said markets were sceptical of European efforts to solve the crisis after EU finance ministers failed to pledge enough money and turned to the rest of the world to come to the aid of Eurozone bailout through the IMF. Eurozone chief Jean-Claude Juncker said after a three-and-a-half-hour conference call that the 17 countries using the single currency had pledged €150 billion (Dh720 billion) in new loans for the International Monetary Fund to use in stabilising the debt-laden euro area. The shortfall from a €200-billion target set on December 9 was in large part caused by Britain's refusal once more to agree to the terms demanded.