The euro gained in Asian trade Friday after the European Central Bank (ECB) slashed interest rates to a record low in a bid to spur economic growth in the debt-stricken eurozone. The euro recovered from initial losses and was trading at $1.3073 in afternoon Asian hours from $1.3063 in New York late Thursday. The single currency was also buying 128.12 yen from 127.93 yen. The dollar was up to 98.01 yen from 97.93 yen. Trading was light, with Japanese markets closed for a holiday.

Asian markets were mostly up on Thursday in quiet trade after an anaemic close on Wall Street, while the dollar's recent rally seemed to have levelled out just short of the 100 yen mark. With few catalysts driving action eyes are moving to Friday's policy decision by the Bank of Japan to see if it adds to the huge stimulus measures unveiled earlier this month as part of a drive to kickstart the economy. Tokyo was 0.14 percent higher by the break, Hong Kong added 0.41 percent, Shanghai fell 1.06 percent and Seoul added 0.42 percent.

The dollar weakened against the yen in Asian trade Wednesday after moving close to the 100 yen mark in the morning, while the euro softened on the back of poor economic data. The dollar bought 99.42 yen in Tokyo morning trade from 99.48 yen in New York Tuesday afternoon, while the euro fetched $1.2998 and 129.23 yen compared with $1.2997 and 129.30 yen.

The yen edged down against other major currencies in Asian trade Friday as dealer focus on a meeting of G20 finance ministers in Washington, looking for reaction to Japan's huge easing measures. The greenback firmed to 98.46 yen in Tokyo from 98.23 in New York late Thursday. The euro rose to 128.64 yen from 128.21 yen, while inching up to $1.3064 from $1.3050 in New York. The dollar may climb to 98.80 later Friday but further gains may not happen until the end of the G20 meeting, a senior dealer at a major bank said.