Euro inches off multi-year lows in Asian trade

The euro inched higher in Asian trade on Wednesday after hitting new multi-year lows against the dollar and yen amid worries over the European debt crisis, AFP reports. The embattled unit has touched fresh two-year lows against the dollar and near 12-year lows against the yen in recent days as Spain appeared to inch closer to a full state bailout. In Tokyo trade Wednesday, the euro fetched $1.2071 and 94.38 yen, from $1.2063 and 94.28 yen in New York late Tuesday. The euro was trading around two year lows at the $1.2050 level in earlier US trade on Tuesday, while it dipped to about 94.08 yen. The dollar bought 78.15 yen on Wednesday against 78.17 yen. Currency rates hardly moved on the release of official data Wednesday that showed Japan posted a record trade deficit for the first half of the year. Apple's weaker-than-expected quarterly earnings and its lowered profit outlook set "a somewhat ominous backdrop to the local trading day", said National Australia Bank. A significant fall in Germany's July manufacturing data stoked speculation about further monetary policy easing by the European Central Bank, it said. "Currency volatilities have edged higher for the third successive session, but on a much smaller scale than that witnessed on Monday and last Friday," it said in a note. Spanish borrowing costs hit a record high this week after another region of the debt-riddled nation said it too may seek rescue aid, roiling world markets already hit by a surprise move by Moody's on Germany's credit rating. The global agency took the first step toward stripping Germany of its coveted AAA rating on Monday, cutting the outlook for Europe's largest economy to "negative". Japanese officials, meanwhile, have repeated warnings that the yen was overvalued, and hinted they may launch another round of currency market intervention to tame the unit.