David Willis in Singapore: Hesitant dealing in the new currency

Bleary-eyed traders on Asia's markets were almost outnumbered by press photographers and television crews as they conducted the first tentative dealings in the new currency.

Traders in Sydney were first at their screens when it made its official debut at five o'clock in the morning local time, followed a few hours later by Tokyo, Hong Kong and then Singapore.

... and new euro travellers cheques go on sale

The euro opened at one-point-one-seven US dollars and a hundred-and-thirty-three Japanese yen, which traders said was above market expectations.

Six hours later in Tokyo it rose against the dollar, although dealers said European banks were stepping into the market to limit the rise.

Analysts say strong demand for the euro could weaken the US dollar, which in turn could give Asia's crisis-ridden economy a boost.

China welcomes euro

Europe is seen as a key market and lower valued Asian currencies could make the region's exports more competitive.

China has welcomed the arrival of the new currency.

The official China Daily newspaper predicted that Chinese companies should find it easier to raise money and sell goods with the euro.

But Japanese officials fear the euro's launch could eclipse their hopes of establishing the yen as an international currency.