Dollar weakens in Asia

The dollar weakened in Asia on Friday following a disappointing batch of data out of the United States and eurozone that led investors out of high risk assets. In midday Tokyo trading, the greenback fetched 101.47 yen, down from 101.57 yen in New York and 101.83 yen in Tokyo earlier on Thursday. The euro bought $1.3718 and 139.22 yen compared with $1.3711 and 139.26 yen. Gross domestic product (GDP) across the 18-nation eurozone expanded just 0.2 per cent in January-March, data agency Eurostat said, half the 0.4 per cent that had been forecast. Italy, the third-biggest economy in the bloc, shrank 0.1 per cent in that period, while Portugal, which is about to emerge from a bailout, contracted 0.7 per cent. Separately Eurostat confirmed eurozone inflation rose to 0.7 per cent in April, up from the 0.5 per cent reported in March but still well off the European Central Bank’s 2.0 per cent target. While there was a bright spot with Germany seeing growth double to 0.8 per cent, the data add to expectations the European Central Bank (ECB) will ease monetary policy conditions to kick-start growth in the region and soothe fears of deflation, according to AFP.