Euro pres­sured as fo­cus re­turns to US rates

The China Post - - BUSINESS INDEX & -

The euro was un­der pres­sure on Wed­nes­day as in­vestors’ con­fi­dence on a Greek debt deal al­lowed fo­cus to shift to the prospects of higher U.S. in­ter­est rates ahead.

The sin­gle Euro­pean cur­rency bought US$1.1184 and 138.73 yen in Tokyo, slightly up from US$1.1168 and 138.36 yen in New York, but still lower than US$1.1393 and 139.95 yen in Asian trade on Tues­day.

The dol­lar rose to 124.03 yen from 123.89 yen in U.S. trade.

“Mar­kets are pretty con­tent with the idea that Greece and its cred­i­tors will do a deal be­fore the June 30 dead­line” on re­pay­ing mas­sive debts, said Emma Law­son, se­nior cur­rency strate­gist at Na­tional Aus­tralia Bank.

“And the Fed will hike in Septem­ber, and China can avoid an eq­uity mar­ket ac­ci­dent. Ex­cel­lent,” she said in a note, adding that helped push up prices of riskier as­sets.

Greece’s Prime Min­is­ter Alexis Tsipras will meet the lead­ers of the coun­try’s in­ter­na­tional cred­i­tors on Wed­nes­day in Brus­sels.

The meet­ing will be held on the side­lines of a eu­ro­zone fi­nance min­is­ters meet­ing there.

Athens pre­sented new re­form pro­pos­als to its cred­i­tors on Mon­day in a bid to un­lock the last tranche of bailout funds and avoid de­fault­ing on its mas­sive debts at the end of June.

The euro stayed weighed down by the Euro­pean mon­e­tary eas­ing even though op­ti­mism was grow­ing that Greece will avert de­fault.

“We sus­pect that po­si­tion­ing has been cleared out to the point where mar­ket par- tic­i­pants are once again more com­fort­able re­turn­ing to the con­sen­sus long-USD trade,” BNP Paribas SA strate­gists led by Steven Say­well, the global head of for­eign ex­change strat­egy in Lon­don, wrote in a June 24 re­port.

The dol­lar was mostly higher other Asia-Pa­cific cur­ren­cies.

It rose to 1,109.77 South Korean won from 1,105.13 won on Tues­day, to 63.68 In­dian ru­pees from 63.63 In­dian ru­pees, and to 33.78 Thai baht from 33.75 baht.

The green­back went up to SG$1.3422 from SG$1.3393, and to 13,293 In­done­sian ru­piah from 13,256 ru­piah, while inch­ing down to 45.12 Philip­pine pe­sos from 45.14 pe­sos.

The Aus­tralian rose to 77.35 U.S. cents from 77.06 cents, while the Chi­nese yuan firmed to 19.96 yen from 19.90 yen.

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