Euro dips over wor­ries of Greek de­fault

The China Post - - MARKETS -

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.

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