The euro rose to another record high against the dollar this morning on worries about the US economy.
The euro hit a new record peak of $1.4928 on Asian trade, ahead of the $1.4875 reached yesterday and within sight of the psychologically important $1.50 level. The euro is up 13 per cent against the dollar this year.
European shares are expected to open slightly firmer, although further direction will depend on US markets, which will reopen for an abbreviated session after the Thanksgiving holiday.
That kept oil within striking distance of $100 a barrel, which in turn helped lift gold towards a one-week high of $810 an ounce.
Trading was light and erratic with holidays in Japan and the United States, giving investors little in the way of fresh leads.
Earlier today, MSCI's measure of Asia Pacific stocks excluding Japan was little changed, steadying after falling in the past six sessions. However, it remained on track for a fourth straight week of decline.
Asian stocks had been caught in a global downdraft sparked by worries about the financial sector after many major banks such as Citigroup wrote off billions of dollars in credit-related losses.
The MSCI index has lost 14 per cent since hitting a record high on November 1st, but was still up 27 per cent this year.