The euro steadied against the US dollar today, supported by Asian buying after the lunar new year holidays which helped to counter the dollar-positive effects of Friday's fall in the US unemployment rate.

A rise in January US payrolls was much smaller than expected, but traders concluded the figure was affected by severe snowstorms and instead focused on a sharp drop in the jobless rate for the latest direction of the American employment sector.

The unemployment rate fell to 9.0 percent from 9.8 percent in November, marking its biggest two-month decline since 1958.

Traders said some Asian sovereign accounts were buying the USD against their local currencies in the overnight session. They then sold those dollars for euros to rebalance their portfolios in late Asian trading, leading into the European morning hours.