Euro eases in Asia after Spain hopes

TOKYO: The euro eased in Asian afternoon trade on Wednesday after getting a boost from a decision by Moody's not to downgrade Spain's credit rating and rising hopes Madrid will seek a bailout.
The currency bought $1.3088 and 102.96 yen in Tokyo morning trade, slipping from $1.3096 and 103.31 yen in New York late Tuesday.
The dollar edged down to 78.68 yen from 78.89 yen.
Ratings agency Moody's offered critical breathing room Tuesday for Spain to fix its fiscal woes, holding the nation's debt rating unchanged at Baa3, one notch above "junk" grade, although a negative outlook means a downgrade is still a possibility.
"It was a factor we've been worried about since June, so with this news, it's likely that optimism toward the debt problem outlook will spread fast," said a senior dealer at a major bank in Tokyo.
Rising speculation that Spain will formally seek a bailout also supported the euro, as European Union leaders prepare for talks on Thursday while there are hopes of ending the year with a deal on a stronger economic and monetary union.