Euro "rebound" after the Fall After the Election

Euro exchange rate moved narrowly against the dollar and the yen in Asia Tuesday, after a "rebound" (turned up) from the lowest position in New York, as investors look at the news of the ruling party in the electoral defeat of France and Greece.

The euro bought 1.3029 dollars and 104.23 yen in Tokyo afternoon trade, compared with 1.3052 dollars and 104.28 yen in New York late Monday. The dollar edged up to 79.98 yen from 79.88 yen.

The euro, which fell below 1.30 dollars to the lowest point in more than three months in Asia on Monday, is likely to be strong because of "short covering", dealers said.

"The pair (euro-dollar) suddenly failed to fall of last night despite a negative factor for the euro over the weekend," said Osao Iizuka, head of foreign exchange trading at Sumitomo Mitsui Trust Bank.

"The couple seems to be back at the previous range of 1.30 to 1.33 dollars," he told Dow Jones Newswires.

National Australia Bank said in a note that the session "last night reflecting on the events of the weekend and conclude the results are not too bad."


"The market has seen a moderate reversal in most cases, with European equities higher, the U.S. vary, the yield (bonds) and commodities also varies," he said.

In France, the candidate of the Socialist Party, Francois Hollande overthrow of President Nicolas Sarkozy on Sunday, becoming the first socialist elected in 17 years to lead the euro zone's second largest economy.

In Greece, the main parties in favor of a "bailout" (bailout) EU-IMF to the country, lost control of parliament.

Dollar-yen exchange rate tends to lack a clear direction for the U.S. Federal Reserve is expected to maintain a wait and see approach on monetary policy, said Sumino Kamei, senior analyst at Bank of Tokyo-Mitsubishi UFJ.

"The attitude of the Fed ... will not change, which could make the U.S. dollar / Japanese yen traded without direction," he said in a note.

Varying dollar against other Asian currencies.

The greenback fell to 1135.40 from 1137.29 South Korean won won on Monday, to 1.2457 Singapore dollars from 1.2460 Singapore dollars and Thai baht from 30.96 to 30.98 baht.

The greenback edged up to 42.33 Philippine pesos from 42.29 pesos, to 29.31 Taiwan dollars from 29.29 dollars to 9220.00 dollars Taiwan and Indonesia of 9195.00 dollars.