The dollar meanwhile was well supported by encouraging US data released overnight, improving investors' risk sentiment.
The euro edged down to $1.2948 in morning Tokyo trade from $1.2960 in New York Thursday. But it was nearly unchanged at 100.59 yen in Tokyo from 100.61 yen in New York.
The single currency tumbled to $1.2858 overnight -- the lowest level since September 14, 2010 -- before regaining ground on brighter US economic data as the market digested the news about Italy's bond auction.
The global market continued to fret over eurozone debt woes, with the Italian bond auction receiving mixed reviews.
Italy raised 7.0 billion euros ($9.0 billion), below the maximum 8.5 billion euros but long-term rates held below the danger threshold of 7.0 percent.
The rate on bonds due in 2021 was 6.7 percent - higher than the 5.77 percent for the last similar operation on October 13. The rate on bonds due in 2022 was 6.98 percent compared to 7.56 percent in November.
Meanwhile, the dollar might gain against the yen in the coming week as US data is likely to stay firm, Masafumi Yamamoto, chief FX strategist at Barclays Bank in Tokyo, wrote in a note.
The dollar bought 77.69 yen in Tokyo, also flat from 77.62 yen in New York.
