Euro eases after first round of French vote

TOKYO: The euro eased against the dollar and yen in Asia on Monday as investors digested news that the Socialist challenger had beaten Nicolas Sarkozy in the first round of France's presidential election. The euro inched down to $1.3192 and 107.34 yen in Tokyo morning trade from $1.3216 and 107.77 yen in New York late Friday. The dollar fell to 81.37 yen from 81.52 yen. A triggering of stop-loss sell orders observed above $1.3150 for the euro could see the common currency fall further, possibly testing support at $1.3114, said Junichi Ishikawa, forex analyst at IG Market Securities. On the upside, sell orders eyed above $1.3250 will also act as resistance, he said. "We'll have to wait and see how the European markets will react to the results of France's election," he told Dow Jones Newswires. As expected, Socialist contender Francois Hollande and the wounded right-wing incumbent will now face off in the May 6 second-round. The dollar/yen was tipped in a 81.30-82.30 band during Asian trading as the pair awaits this week's policy meetings by the US and Japanese central banks for cues, said a senior trader at a major Japanese trust bank. "It won't move much before the events," he said. The policy-making Federal Open Market Committee is to start a two-day meeting on Tuesday while the Bank of Japan is to hold a policy meeting on Friday amid hopes for monetary easing. (AFP)