TOKYO: The euro inched lower in Asian trade on Tuesday amid political uncertainty in Europe, while the yen gained some ground as traders turn to the Japanese unit as a safe-haven currency.

The euro was buying $1.3148 in Tokyo morning trade, against $1.3154 in New York late Monday, while it inched lower to 106.67 yen, from 106.78 yen.

The dollar bought 81.14 yen, down slightly from 81.18 yen.

The euro would likely trade against the greenback in a $1.3050 to 1.3200 range in Asia on Tuesday due to a lack of fresh trading cues, said Osao Iizuka, head of currency trading at Sumitomo Mitsui Trust Bank.

Overnight, the unit took a hit on news that eurozone private sector activity in April sank at the fastest rate in five months, suggesting the 17-nation bloc faces a longer recession than previously thought.

Also taking a toll were the results of the first round of the French presidential election, with Socialist challenger Francois Hollande ahead of Nicolas Sarkozy.

Hollande has said he would move to renegotiate a fiscal pact agreed on by European leaders late last year, shifting the focus toward growth rather than austerity measures as a buffer against the eurozone debt crisis.

But the move may stoke friction with other nations, including Germany, amid ongoing efforts to get the eurozone's fiscal house in order, dealers said.

The French vote showed a deeply divided electorate -- 20.0 percent voted for far-right candidates - with no clear sign of who will win a runoff vote in May.

Uncertainty about the French presidential race will continue to weigh on the euro, likely keeping it below the $1.3200 level, Iizuka told Dow Jones Newswires.

Meanwhile, a breakdown in Dutch budget talks sparked the collapse of the government, with Prime Minister Mark Rutte submitting his resignation.

Investors were also looking to policy meetings by the US and Japanese central banks this week amid speculation of further monetary easing, dealers said.