Euro rangebound before German vote

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TOKYO: The euro was rangebound against other major currencies in Asia on Thursday as investors stayed cautious ahead of a key German vote on expanding the region's debt bailout fund.

The euro fetched $1.3555 in Tokyo trade against $1.3536 in New York late Wednesday. The European single unit was at 103.71 yen against 103.60 yen.

The dollar traded at 76.51 yen, little changed from 76.53 yen.

Germany is to vote later in the day on implementing changes to the European Financial Stability Facility (EFSF) drafted at a July 21 eurozone summit.

The German vote will come after the euro was temporarily supported overnight by the Finnish parliament's approval of plans to strengthen the European Union's debt bailout fund.

The decision was significant as Finland, locked in a row over its demands for collateral in exchange for Greek loan guarantees, was seen as a potential stumbling block to implementing the amended EFSF.

While the vote is expected to pass in Germany, apparent discord and dithering among Europe's leaders on how to contain the debt crisis has continued to unnerve markets.

"The German vote, if approved, would be positive though would only give temporary relief," said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.

"Uncertainties persist and the market cannot buy the euro because of high expectations for further negative news," Kamei said.

"Divided remarks from European officials have shown that the region has failed to demonstrate resolve and solidarity to support Greece by overcoming internal differences," she said.

Chris Macdonald, investment advisor at RBS Morgans in Sydney, told Dow Jones Newswires: "the market's really just clutching at straws looking for leadership" in Europe. (AFP)