TOKYO  - The euro was firmer in Asian trade on Tuesday, after the unit pared a sharp rally late last week, with investors now focusing on a European Central Bank (ECB) rate-setting meeting.The common currency was quoted at $1.2600 and 100.44 yen in Tokyo afternoon trade, modestly higher than $1.2582 and 100.05 yen in New York late Monday. The dollar edged up to 79.71 yen in thin trade, from 79.50 yen the previous day, ahead of key US jobs data due later in the week as markets remain cautious about the health of the world's biggest economy.A surprise list of measures aimed at reversing the eurozone's spiralling crisis had sent the euro higher last week, but the unit's rally quickly fizzled with traders looking for what action the ECB may take at its meeting Thursday.The ECB's "Governing Council may have little choice but to implement a range of policy tools to shore up the ailing economy as the region faces a growing threat of a prolonged recession", David Song, Currency Analyst at DailyFX, told Dow Jones Newswires.The dollar's strength against the yen stems from investors' preference for risk assets and higher yielding currencies, a currency manager at a Japanese bank told Dow Jones."Sentiment hasn't turned to risk-off. US equities showed resilience despite the soft manufacturing report," he said.But thin trading volumes may be exaggerating price movements as some traders took to the sidelines ahead of the release of economic data later this week, he added.The dollar was lower against other Asia-Pacific currencies.It fell to Sg$1.2635 from Sg$1.2685 on Monday, to 1,140.30 South Korean won from 1,143.05 won, and to 41.75 Philippine pesos from 41.97 pesos.It also fell to 31.51 Thai baht from 31.63 baht and to 55.09 Indian rupees from 55.66 rupees.The greenback was flat at Tw$29.85 and at 9,393.00 Indonesian rupiah.The Australian dollar firmed to US$1.0257 from US$1.0227, while the Chinese yuan was flat at 12.53 yen.