Euro rises on relief over ECB health test

Tokyo

THE euro firmed against other major currencies in Asia on Monday after the European Central Bank (ECB) gave a large majority of banks in the region a clean bill of health. The common currency rose to US$1.2704 and 137.14 yen in Tokyo afternoon trade from US$1.2666 and 136.97 yen in New York on Friday afternoon. The US dollar slipped against the yen ahead of the Federal Reserve's two-day policy meeting which was to start on Tuesday. The US dollar was at 107.94 yen from 108.14 yen in US trade on Friday afternoon.

In the most in-depth and stringent audit of eurozone banks ever undertaken - aimed at preventing a repeat of the crisis that nearly led to the euro's collapse - the ECB said on Sunday it found that 25 out of a total 130 banks had a combined capital shortfall of 25 billion euros (S$40 billion) at the end of 2013.