WORLD FOREX: Euro Edges Up On Nikkei Gains; May Fall Later

TOKYO (MarketWatch) -- The euro edged up against the yen and dollar in Asia Tuesday as slight gains in Tokyo share prices prompted investors to buy back the risk-sensitive currency.

But lingering concerns over the economic and fiscal health of euro-zone members will likely continue to weigh on the common currency, dealers said.

In Tokyo Tuesday, non-Japanese hedge funds and Japanese short-term players bought the euro. At 0450 GMT, it stood at $1.3646 compared to $1.3613 late Monday in London, and at Y122.73 compared to Y122.46.



"Of course they have to give at least lip service to support Greece, but we would need some kind of more concrete plan from the meeting today to really help reverse the euro's negative trend," Kato said.

Elsewhere, the dollar traded hands at Y89.95 at 0450 GMT compared to Y89.99 late Monday in London. The U.S. unit would likely hold to a Y89.50 to Y90.50 band for the rest of the week, Shinkin Central Bank's Kato said, with selling orders from Japanese exporters capping any sharp rises.