The euro dipped against the dollar in Asia Monday, failing to derive much benefit from the European Central Bank's surprise intervention at the end of last week.
The European single currency traded at $0.8658 around 2:00 pm (0500 GMT) in Tokyo, down from $0.8664 in New York late Friday.
"Investors sold the euro to adjust their positions," said Bank of Tokyo-Mitsubishi dealer Kiyoshi Kuzuhara.
"Investors dismissed the intervention as it was by the ECB alone, and in any case it was not big enough," he said.
The ECB intervened on its own on Friday to support the ailing euro, lifting the currency up close to $0.88. But it lost all of its earlier gains, tumbling below $0.86 before rallying on fresh intervention rumours.
The move was only the second ECB intervention since the euro's January 1999 launch, following concerted action taken with the United States and Japan on September 22.
In acting alone, the ECB had failed to give a convincing boost to the euro, Kuzuhara said.
"Some investors are doubtful of the lasting impact of the intervention and also its timing, given that the euro had been bought back last week," Kuzuhara said.
But Mizuho Trust and Banking dealer Kazuhiro Kaneko noted that the euro had been steadily recovering from a historic low of $0.8237 reached on October 26.
"So investors see the (latest) intervention as helping to push it up further," he said.
Against the yen, the euro traded at 92.87, up from 92.63 in New York Friday.
The dollar meanwhile bought 107.24-26 yen, up from 106.93 yen in New York Friday.
"The dollar is being bought on bargain-hunting after it languished against the yen last week," said Fuji Bank dealer Hideyuki Tsukamoto.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)