TOKYO: The euro moved narrowly against the dollar and yen in Asia on Tuesday after bouncing off lows overnight as investors digested news of election defeats for French and Greek ruling parties.

The euro bought $1.3043 and 104.38 yen in Tokyo morning trade, compared with $1.3052 and and 104.28 yen in New York late Monday. The dollar edged up to 80.01 yen from 79.88 yen.

The euro, which fell below $1.30 to hit its lowest point in over three months in Asian trade Monday, was likely to be firm Tuesday on short-covering after overnight attempts to test the downside failed, dealers said.

“The (euro-dollar) pair unexpectedly failed to drop much overnight despite negative factors for the euro over the weekend,” said Osao Iizuka, head of foreign exchange trading at Sumitomo Mitsui Trust Bank.

“The pair appears to be back in the previous $1.30-1.33 range,” he told Dow Jones Newswires.

National Australia Bank said in a note: “Last night's session reflected on the weekend's events and concluded the outcome wasn't so bad.”

“Markets have seen modest reversals in most cases, with European equities higher, the US mixed, (bond) yields and commodities are also mixed,” it said, adding market pressures remain despite the return of relative stability.

The dollar-yen rate is likely to lack clear direction as the Federal Reserve is expected to stick to its wait-and-see approach to monetary policy, said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.

“The Fed's stance examining the economic condition will not be changed, which could make the US dollar/Japanese yen trade directionless,” she said in a note.