Euro drops as in­vestors wait for Greek deal

The China Post - - BUSINESS INDEX & -

The euro slipped on Tues­day with in­vestors ad­just­ing po­si­tions as they waited for new de­vel­op­ments in Greek debt talks.

The com­mon Euro­pean cur­rency fell to US$1.1273 and 139.48 yen in Tokyo from US$1.1340 and 139.92 yen in New York late Mon­day.

The dol­lar rose to 123.72 yen from 123.38 yen in U.S. trade.

The euro was un­der­pinned by op­ti­mism that Greece would se­cure a bailout deal with its of­fi­cial cred­i­tors.

Nonethe­less the prospect that the Euro­pean Cen­tral Bank will con­tinue to stick to its mas­sive eas­ing pro­gram high­lights its pol­icy di­ver­gence with the U.S. cen­tral bank, which is mov­ing to­wards an in­ter­est rate hike.

Tokyo’s bench­mark Nikkei in­dex was up 1.40 per­cent in mid-af­ter­noon trade, reach­ing its high­est in­tra­day level in more than 15 years.

Greece of­fered eco­nomic re­forms in ex­change for the last pay­ment of 7.2 bil­lion eu­ros from the cur­rent aid pro­gram.

With­out that money, Greece may not be able to make a 1.5-bil­lion-euro re­pay­ment to the IMF due on June 30, risk­ing a de­fault and pos­si­ble chaotic exit from the eu­ro­zone.

Af­ter an emer­gency sum­mit in Brus­sels, eu­ro­zone lead­ers or­dered their fi­nance min­is­ters to hold fresh talks on Wed­nes­day to thrash out the de­tails ahead of a full meet­ing of all 28 Euro­pean Union lead­ers on Thurs­day.

The dol­lar was largely higher against other Asia-Pa­cific cur­ren­cies.

It rose to 1,105.13 South Korean won from 1,098.70 won on Mon­day, to 63.63 In­dian ru­pees from 63.46 ru­pees, and to 45.14 Philip­pine pe­sos from 45.00 pe­sos.

The dol­lar also firmed to 33.75 Thai baht from 33.63 baht, and to SG$1.3393 from SG$1.3306.

The green­back fell to 13,256 In­done­sian ru­piah from 13,302 ru­piah.

The Aus­tralian dol­lar dropped to 77.06 U.S. cents from 77.84 cents, while the Chi­nese yuan edged up to 19.90 yen from 19.76 yen.

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