The euro rose in Asia on Thursday, boosted by speculation Greece will be given more time to put in place reforms to help rein in its huge public debt, while the dollar also rose against the yen.
The single currency bought $1.2975 and 103.73 yen in Tokyo morning trade, up from $1.2972 and 103.49 yen in New York late Wednesday. On Thursday, the dollar moved toward the 80 yen level, trading at 79.94 yen in Tokyo, up from 79.79 yen in New York. There are growing expectations that the Bank of Japan will take further easing steps at a policy meeting next week, which has put pressure on the yen.
But currency markets were likely take a wait-and-see stance owing to a lack of fresh trading cues, said a senior dealer at a Japanese bank. “There are no signs of big movements as the weekend approaches,” he told Dow Jones Newswires.
Worsening business sentiment in Germany accelerated euro selling in the United States, sending it to as low as $1.2921 at one point, but hopes Greece will get an extra two years to get itself back on track provided the single currency some support. On Wednesday, Greece’s finance minister said he had agreed on a new austerity package with Athens’ international creditors and won more time to fix the debt-crippled nation’s finances.
However the European Union and International Monetary Fund said only that there had been progress but no firm deal, as Greece also looks to unlock its latest batch of rescue cash. “There is an absence of hard news on the fate of Greece’s next bailout tranche” despite its progress with creditors, National Australia Bank said in note.
The US Federal Reserve’s two-day policy meeting that ended Wednesday offered no new policy measures, although the central bank reaffirmed its commitment to keep its easy policy stance in place until the economy was much stronger.
