Euro falls on jit­ters over Greece debt

The China Post - - BUSINESS INDEX & -

The euro drifted lower in Asia on Tues­day with in­vestors fol­low­ing talks be­tween debt-hit Greece and its in­ter­na­tional cred­i­tors as Athens looks to re­form its bailout obligations.

In Tokyo, the sin­gle cur­rency slipped to US$1.0790 and 129.69 yen, from US$1.0825 and 130.10 yen in New York, while the U.S. dollar was at 120.17 yen against 120.18 yen.

Ex­perts from the In­ter­na­tional Mon­e­tary Fund and the Euro­pean Union are scru­ti­niz­ing a list of re­forms that Athens has pro­posed in its bid to get the cred­i­tors to re­lease 7.2 bil­lion eu­ros in much­needed loans that will help it avoid a de­fault.

Greece’s gov­ern­ment says the re­forms would help raise an ex­tra three bil­lion eu­ros for its cof­fers with­out re­sort­ing to wage and pen­sion cuts.

A de­fi­ant Greek Prime Min­is­ter Alexis Tsipras told law­mak­ers late on Mon­day that he wanted a deal but would not sub­mit to cred­i­tors un­con­di­tion­ally.

Tsipras swept to power on a pledge to end the aus­ter­ity mea­sures im­posed as part of a bailout by Greece’s cred­i­tors, which Athens blames for ham­mer­ing the econ­omy.

“There are still dif­fer­ences be­tween what Greece is ap­par­ently pre­pared to of­fer in the way of fur­ther re­form and what the Brussels group ... is seek­ing be­fore the ... funds are made avail­able,” Na­tional Australia Bank said in a note.

In­vestors were given some con­fi­dence by news that China’s cen­tral bank on Mon­day cut min­i­mum down pay­ments on sec­ond homes from 60-70 per­cent to 40 per­cent in a bid to boost the slow­ing econ­omy.

That de­ci­sion fu­elled hopes for fur­ther stim­u­lus mea­sures down the road.

But the Chi­nese yuan held up, buy­ing 19.37 yen against 19.19 yen on Mon­day.

The dollar was mixed against other Asia-Pa­cific cur­ren­cies.

It edged up to SG$ 1.3754 from SG$1.3749 on Mon­day, to 1,110.17 South Korean won from 1,105.85 won, and to 13,094.90 In­done­sian ru­piah from 13,068.70 ru­piah.

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