Euro rangebound in Tokyo

The euro stood at $1.3475 and 111.79 yen in Tokyo Friday afternoon, compared with $1.3472 and 111.71 yen in New York late Thursday.

The dollar also bought 82.90 yen in Tokyo, down slightly from 82.98 yen in New York.

"Players are looking for fresh factors to take their position as the euro appears to have difficulties in breaking the 1.35 line," said Teppei Ino, analyst at Bank of Mitsubishi UFJ.

The euro recovered its earlier loss against the dollar after facing selling pressure despite signs that eurozone leaders may be preparing a comprehensive response to the sovereign-debt crisis that has roiled markets.

The 17-member currency union, which is facing sovereign-credit downgrades and economic turmoil in its most vulnerable countries, could announce a troubleshooting plan within weeks, analysts said.

But the euro came under the weight of stronger-than-expected US housing and employment data released Thursday, David Watt, a senior currency strategist at RBC Capital Markets, told Dow Jones Newswires.

He said a "terrible" auction of 10-year Treasury Inflation-Protected Securities boosted US yields, making the dollar more attractive.

"The dollar steals the spotlight back," he said, as global investors keep solid hopes for US recovery.

Meanwhile, the euro was likely to remain under pressure due to political developments in Ireland, where Prime Minister Brian Cowen called a general election in the wake of a failed attempt to reshuffle his cabinet, Watt said.

The greenback traded mixed against regional Asian currencies.

It rose to Tw$29.09 from Tw$29.03 on Thursday, to 1,123.75 Korean won from 1,119.75, to 9,087.50 Indonesian rupiah from 9,072.50 and to 30.67 Thai baht from 30.55.

It fell to 44.44 Philippine pesos from 44.47 and to $1.2875 Singapore from 1.2878.