FOREX-Euro falls to one-week low after brief respite
* Euro support seen at 200-day moving average around $1.2827
* German data, Spanish debt, Greek fiscal situation weigh on euro
By Lisa Twaronite
TOKYO, Sept 25 (Reuters) - The euro fell to a one-week low against the dollar on Tuesday after a short-lived respite in early Asia trade as worries about Spain's debt persisted and weak German business data fanned fears of slowing growth.
The recently resurgent yen initially gave up some ground against the dollar and euro, but slowly clawed it back in the afternoon. Real-money accounts were said to selling the euro late in the Asian session.
A drop in German business sentiment to its lowest since early 2010 stoked concerns about a slowdown in the euro zone's largest economy, despite the European Central Bank's recently announced bond-buying plan.
Spain also remained in focus, as its government bond yields rose on concerns that the country is dragging its feet in requesting the international bailout that most market participants expect.
"It is natural that some investors think Spain is taking too long, but the market's expectations were too high, too fast," said Masashi Murata, senior currency strategist at Brown Brothers Harriman in Tokyo.
"Problems such as Spain's are complex, and it takes time to move toward a solution," he said.
The euro was buying $1.2892 after falling as low as $1.2886, which was its weakest since Sept 13.
The European unit reached as high as $1.2954 in Asian trading, though that was still well shy of what had been a four-month high of $1.3173 hit on Sept. 17.
Support was seen at its 200-day moving average, which is now around $1.2827.
Against the yen, the euro was buying 100.26 yen after rising as high as 100.82 yen. The euro dipped as low as 100.24 yen late in the Asian session, its lowest level since Sept. 13.
GREECE STILL A CONCERN
This week, Spain is expected to unveil new structural reforms and its draft budget plan for 2013. Investors also await results of stress tests on its banking sector.
A Moody's credit review of Spain is also expected this week, and the ratings agency could downgrade Spanish debt to junk status, although it has said it would welcome news of an aid request.
"Fears about Europe's situation remain among investors, with the focus mostly on Spain, but Greece is also still a concern, after a report its budget deficit is bigger than previously thought," said Kimihiko Tomita, head of foreign exchange for State Street Global Markets in Tokyo.
German's Der Spiegel reported the Greek deficit could be 20 billion euros, nearly double previous estimates.
"There is no official confirmation of this, but if it turns out to have some truth in it, it would be very bad news, and could put more pressure on the euro," he said.
In Japan, Finance Minister Jun Azumi reassured markets on Tuesday that there would be no vacuum in currency policy due to his pending departure from his post to take a new position next month in the ruling Democratic Party.
Azumi told reporters he stands ready to take firm measures on currencies as long as he is finance minister.
Some market participants expected the yen to face continuous upward pressure this week from Japanese repatriation ahead of half-year book-closing, though others said such flows were likely to be thin as many companies had already covered their needs.
The dollar bought 77.76 yen, moving back toward Sept. 14's low of 77.46 yen.
Support was said to lie around the 77.60 to 77.70 range. That would mark retracement of the rally from 77.13 yen on Sept. 13 to a one-month high of 79.22 yen on Sept. 19 after the Bank of Japan announced it would further ease monetary policy.
The Australian dollar slipped 0.1 percent to $1.0419 , moving away from a six-month high of $1.0625 set on Sept 14.
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