Euro steady despite Greek debt fears
The euro held up Tuesday despite the stalemate in bailout reform talks between Greece and its creditors, fueling fears it will default on its debt repayments and possibly tumble out of the eurozone.
In Tokyo trading, the single currency bought US$1.1280 and 139.38 yen, little changed from US$1.1285 and 139.23 yen in New York.
The U.S. dollar rose to 123.55 yen from 123.38 yen.
After the collapse of talks at the weekend, both sides in the long-running Greek crisis were still unable Monday to break the deadlock, blaming each other for the impasse.
The European executive insisted creditors had made “major concessions” but the far-left government in Athens rejects what it calls their “irrational” demands.
Greece must agree on a deal by the end of the month, when it is due to make a huge debt repayment, or else it faces a default that could lead to it plunging out of the eurozone.
Investors are also keeping an eye on the Federal Reserve’s policy meeting, which wraps up Wednesday.
Markets are hoping for some clues about its timetable for an interest rate rise following a broadly upbeat string of data on the U.S. economy in recent weeks.
Friday sees the Bank of Japan conclude its own meeting, which will be watched see if and when it will expand its stimulus program.
The dollar was mixed against other Asia-Pacific currencies.
It weakened to SG$ 1.3463 from SG$1.3480 on Monday, to 33.69 Thai baht from 33.75 baht, to 64.08 Indian rupees from 64.12 rupees, and to 45.10 Philippine pesos from 45.28 pesos.
The greenback rose to 1,118.35 South Korean won from 1,115.81 won, and to 13,346 Indonesian rupiah from 13,334 rupiah.
The Australian dollar rose to 77.65 U.S. cents from 77.17 cents while the Chinese yuan bought 19.87 yen against 19.85 yen.