Euro Trades Narrowly Ahead Of German-Greek Talks
The euro traded in a tight range in Asian trade Friday ahead of a closely watched meeting between German Chancellor Angela Merkel and Greek Prime Minister Antonis Samaras over financial aid for Athens.
The European common currency bought $1.2559 and 98.69 yen in Tokyo afternoon trade, hardly changed from $1.2562 and 98.59 yen in New York late Thursday.
The dollar changed hands at 78.50 yen against 78.47 yen in U.S. trade.
The outcome of the meeting between Merkel and Samaras in Berlin later Friday was likely to weigh on the euro, said Masafumi Yamamoto, chief FX strategist at Barclays Bank in Tokyo.
"It is likely difficult to have Merkel promise for early additional support for Greece at the moment," Yamamoto said in a note.
Speaking after a meeting with Samaras, Eurogroup chief Jean-Claude Juncker this week urged debt-hit Athens to ramp up reform efforts to secure continued financial aid from the European Union and International Monetary Fund.
A longer deadline for Greece to meet conditions agreed with international creditors would depend on the findings of inspectors who are to arrive in Athens next month, he said.
"As regards the lengthening of the adjustment period, it will depend on the findings of the troika mission," Juncker said in reference to auditors from the EU, European Central Bank and IMF.
In dollar-yen trade, the greenback was under pressure as U.S. Treasury yields declined on speculation that the Federal Reserve would launch fresh easing measures to power the world's biggest economy.
Osamu Takashima, chief FX strategist at Citibank Japan, added that the speculation may push the dollar lower ahead of an August 31 speech by Fed chairman Ben Bernanke.
The dollar was mixed against other Asia-Pacific currencies.
It rose to 9,503 Indonesian rupiah from 9,497 rupiah on Thursday, to Sg$1.2488 from Sg$1.2435, to 55.41 Indian rupees from 55.26, and to 1,134.38 South Korean won from 1,130.30 won.
The greenback eased to 31.23 Thai baht from 31.26 baht while staying almost unchanged at Tw$29.95 and 42.15 Philippine pesos.
The Australian dollar fell to $1.0431 from $1.0519 while the Chinese yuan bought 12.34 yen from 12.36 yen.
Source: Agence France Presse
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