Euro holds on to gains, awaits Greece

The China Post - - BUSINESS INDEX & -

The euro held on to gains on Thurs­day as mar­ket play­ers waited for fresh news from marathon talks over a bailout deal for Greece.

The sin­gle Euro­pean cur­rency fetched US$1.1200 and 138.81 yen in Tokyo, marginally down from US$1.1208 and 138.86 yen in New York but still up from US$1.1184 and 138.73 yen in Asian trade on Wed­nes­day.

The dol­lar was chang­ing hands at 123.94 yen against 123.89 yen in U.S. trade.

“There’s a sense Greek ne­go­ti­a­tions will ex­tend through the end of the month and mar­kets ap­pear to be­lieve there’ll even­tu­ally be an ac­cord,” said Ya­suhiro Kaizaki, vice pres­i­dent for global mar­kets at Su­mit­omo Mit­sui Trust Bank in New York.

“An agree­ment may spur buy­ing mo­men­tar­ily, but the euro will prob­a­bly be sold as fo­cus shifts to the dol­lar,” he told Bloomberg News.

The dol­lar has re­cently at­tracted funds as the Fed­eral Re­serve is ex­pected to raise key in­ter­est rates as early as in Septem­ber.

Greek Prime Min­is­ter Alexis Tsipras will con­tinue marathon talks with cred­i­tors in Brus­sels Thurs­day to thrash out a debt deal to save Athens from de­fault, de­spite hav­ing lashed out at lenders for re­ject­ing his re­form plans.

Tsipras held a late-night meet­ing with the heads of the Euro­pean Com­mis­sion, In­ter­na­tional Mon­e­tary Fund and Euro­pean Cen­tral Bank, Greece’s main bailout mon­i­tors, af­ter seven hours of dis­cus­sions ear­lier Wed­nes­day failed to pro­duce a break­through.

They were hop­ing to fi­nal­ize a deal in time to present it at a meet­ing of eu­ro­zone fi­nance min­is­ters later Thurs­day in the runup to a Euro­pean Union sum­mit meet­ing.

Time is run­ning out, with Athens need­ing the ex­tra bailout cash to avoid de­fault­ing on a huge IMF pay­ment on June 30, which could send it crash­ing out of the eu­ro­zone.

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