Tokyo - The euro slipped in Asia on Wednesday after more gloomy data out of Germany exacerbated worries about Europe's largest economy and the engine of eurozone growth.
In Tokyo afternoon trading, the single currency weakened to $1.2637 and 135.56 yen from $1.2659 and 135.62 yen in New York, while the dollar firmed to 107.33 yen from 107.13 yen.
Germany's widely watched ZEW investor confidence index fell in October for a 10th consecutive month, hitting its lowest level since November 2012.
Berlin later in the day cut its economic growth forecasts to 1.2 percent for this year and 1.3 percent in 2015, from previous forecasts of 1.8 percent and 2.0 percent, respectively.
The worsening outlook for German growth adds to concerns about the 18-member eurozone, which some analysts say is threatened with recession and is already holding back a global recovery.
“The German economy is losing traction very quickly and there is a real prospect that it could contract again in (the third quarter) after the 0.2 percent fall in the second quarter,” National Australia Bank said in a note.
Adding to the gloom, industrial output in the eurozone fell 1.8 percent in August, according to data published Tuesday, reversing the previous month's gain that had stoked hopes of a fragile recovery.
Attention will now turn to speeches later in the day by European Central Bank chief Mario Draghi, after the recent announcement of further monetary easing measures to prop up the economy.
“ECB chief Draghi will also be on the wire but judging by recent rhetoric there will unlikely be anything dramatic despite further weakening in eurozone data releases,” Credit Agricole said.
Also on investors' radar screens are US retail sales and the Federal Reserve's Beige Book regional economic report, both due later Wednesday.
The dollar was mostly higher against other Asia-Pacific currencies.
It strengthened to 61.42 Indian rupees from 61.13 rupees on Tuesday, to 44.89 Philippine pesos from 44.74 pesos, and to 12,225.00 Indonesian rupiah from 12,190.40 rupiah.
The US unit also firmed to 32.53 Thai baht from 32.43 baht and to Sg$1.2768 from Sg$1.2712.
The dollar was nearly flat at 1,064.20 South Korean won from 1,064.60 won and Tw$30.39 against Tw$30.40.
The Australian dollar slipped to 87.26 US cents from 87.85 cents while the Chinese yuan edged up to 17.48 yen from 17.46 yen.
AFP