Euro rises on hopes debt deal for Greece can be found, avoiding default
The euro rose against other major currencies on Monday as new reform proposals by Greece fueled optimism that Athens may be able to clinch a bailout deal with its creditors and avoid defaulting on its debt.
The single currency climbed to US$1.1396 and 139.87 yen in Tokyo from US$1.1349 and 139.23 yen in New York late Friday. The American dollar fetched 122.73 yen against 122.69 yen in U.S. trade.
Eurozone leaders were set to hold an emergency meeting later Monday.
Athens put forward new proposals to its creditors ahead of the crunch summit, offering a ray of hope that a deal to end the country’s debt crisis can be struck after five months of deadlock.
It is not clear what concessions have been offered by either side, but Greek premier Alexis Tsipras detailed what his office called a “mutually beneficial deal” in a phone call with German Chancellor Angela Merkel, French President Francois Hollande and European Commission President Jean-Claude Juncker.
Pressure is mounting to prevent Greece from defaulting on its debt, with a June 30 payment deadline approaching.
But Harui said the euro would drop only temporarily even if Greece defaults and drops out of the common currency.
The U.S. dollar was lower against other Asia-Pacific currencies.
It slipped to 1,098.70 South Korean won from 1,106.94 won on Friday, to 63.46 Indian rupees from 63.79 rupees and to 45.00 Philippine pesos from 45.06 pesos.