Euro dips over worries of Greek default
The euro dipped Monday on fears about a Greek default, as tense talks between Athens and its international creditors lumber along with no breakthrough in sight.
In Tokyo, the euro slipped to US$1.0780 (NT33.42) and 127.89 yen from US$1.0810 and 128.49 yen in New York.
The dollar fetched 118.62 yen, down from 118.86 yen in U.S. trade.
At the weekend, both European Central Bank chief Mario Draghi and IMF Managing Director Christine Lagarde warned at IMF-World Bank spring meetings in Washington that Greece has not provided enough information about how its economic and reform plans will impact its finances.
With Greece seeking the release of another 7.2 billion euros in bailout funds from the European Union, Draghi cautioned that not reaching an agreement would take the situation into “uncharted waters.”
He and Lagarde said that however the new far-left Greek government of Alexis Tsipras wanted to adjust policies under the country’s massive bailout, it still needed to demonstrate the effect on the budget and debt.
Greece’s Deputy Prime Minister Ioannis Dragasakis said in an interview published Sunday that Athens would stand firm in negotiations with its creditors.
After the euro appeared last month to be on its way to hitting parity with the dollar for the first time since 2002, the embattled unit staged a rally, partly due to hopes for a Greek deal.
Draghi stood behind the euro at the weekend, saying it was “pointless to go short on the euro,” and challenged traders who were sour on the currency to “do it.” Traders short sell a currency if they expect it to fall.
The American dollar was mostly weaker against other Asia-Pacific currencies Monday.
It slipped to SG$1.3447 from SG$1.3477 on Friday, to 1,081.95 South Korean won from 1,083.95 won, and to 32.37 Thai baht from 32.40 baht.
The greenback also weakened to 44.25 Philippine pesos from 44.36 pesos while it rose to 62.54 Indian rupees from 62.37 rupees and to 12,879.00 Indonesian rupiah from 12,862.00 rupiah.
The Australian dollar rose to 78.01 U.S. cents from 77.80 cents, while the Chinese yuan eased to 19.13 yen from 19.22 yen.