FOREX-Dollar inches up vs euro on econ doubts, G8 eyed
* Dollar firms vs euro on doubts over global recovery
* July 8-10 G8 meeting eyed for FX diversification debate
By Rika Otsuka
TOKYO, July 6 - The dollar inched up against the euro on Monday, supported after a weak U.S. employment report last week raised doubts about a quick recovery in the global economy.
Activity was subdued in early Asian trade, with the market lacking any clear direction, as market participants awaited fresh factors such as more economic indicators and U.S. corporate earnings announcements for the second quarter.
"Investors have not yet decided their currency strategies for the second half year that has just started," said a senior trader at a European bank. "The key factor to help set these would be whether shares resume their rally, allowing investors to take more risks. Until that happens, currencies are likely to stay in ranges," he said.
The euro was at $1.3960 <EUR=>, easing from $1.4000 in late European trade on Friday.
U.S. financial markets were shut on Friday due to the Independence Day holiday.
The dollar was barely changed against the Japanese currency at 95.85 yen <JPY=>.
The dollar index, which tracks the dollar's performance against a basket of six major currencies, was up 0.1 percent to 80.461 <.DXY>.
The safe-haven dollar gained sharply on Thursday when data showed the U.S. economy lost a greater than expected 467,000 jobs in June, dampening hopes that the global economy is about to recover. [ID:nN01210643]
The market is also focused on the Group of Eight meeting on July 8-10 for any further debate on currency diversification.
A Japanese official said on Friday that major countries should back the dollar as the key international currency at the summit, although emerging economies may discuss a new global reserve currency on the sidelines. [ID:nT294215]
China has called for a debate on a new global reserve currency when leaders from the G8 meet with the G5 emerging countries this week, a G8 sources told Reuters.