Thursday October 23, 2014 Search
Weather | Athens
22o C
16o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Yen jumps, euro drops on the US fiscal fear, Greece debt doubt

The yen soared and the euro moved away from the previous session's one-month high against the dollar in Asian trading Wednesday as investors' relief about a new debt target for Greece turned to unease over the looming U.S. fiscal crisis.

The U.S. Congress pushed toward compromise on Tuesday on the «fiscal cliff» of tax increases and spending cuts due to take effect from early next year, but an agreement still appeared elusive despite growing pressure from American business interests for action.

Comments by U.S. Senate Majority Leader Harry Reid on Tuesday about the lack of progress by Democratic and Republican lawmakers also fanned concerns.

Investors unwound long dollar and euro positions against Japan's currency. The yen had lost about 4 percent against the dollar over the past two weeks as investors started to price in a possible shift in monetary policy after Japan's December 16 election. Shinzo Abe, likely to emerge as the country's next leader, has called for more aggressive easing.

"Worries about the U.S. fiscal cliff have increased, while the effects of the 'Abe trade' have faded for now,» said Masashi Murata, senior forex strategist at Brown Brothers Harriman. «The market wants to see what the Bank of Japan actually does,» he said.

Disappointment about the lack of details in the Greece deal added to pressure on the euro. While international lenders agreed on a plan to cut Greek debt, which will allow the country to secure more financial aid and avoid a chaotic default, market skepticism grew over a lack of detail on how Athens will implement the reforms needed to meet its new targets.

"The purpose of the meeting was supposed to have been not to just give Greece additional funding, but to consider the evidence that Greece deserved to receive additional funding,» said Kimihiko Tomita, head of foreign exchange for State Street Global Markets in Tokyo.

"This purpose was not fulfilled, which is why the euro buying has halted,» he said.

Europe's «muddle-through approach» on Greece threatens to amplify the outcome of the U.S. fiscal talks on the euro, strategists at Barclays wrote in a note to clients on Wednesday.

"If they go well, the relief on peripheral assets may have legs, including the euro. If it goes bad, even France may get questioned by an uncertain market, and we would expect the euro to suffer,» they said.

The euro had been in a rising trend against the dollar since last week, as investors' hopes rose that a deal on Greece would be reached and that U.S. lawmakers would make progress on addressing the fiscal impasse. The single currency rose as high as $1.3010 on Tuesday on trading platform EBS, its highest level since late October.

The euro was down about 0.2 percent in Asia at $1.2920, after earlier breaking below support at its 55-day moving average at $1.2918. Support was also cited at the 38.2 percent Fibonacci retracement of its recent rally at $1.2877.

The European unit also skidded 0.6 percent to 105.69 yen, moving away from a seven-month high of 107.135 yen set on Monday. Stop-loss orders were said to be placed around 105.50 yen.

The dollar dropped about 0.4 percent to 81.81 yen, moving away from a 7-1/2 month high of 82.84 yen reached last Thursday.

The dollar got no help from starkly diverging messages from U.S. Federal Reserve officials on Tuesday. Charles Evans, president of the Chicago Federal Reserve and one of the Fed's most outspoken doves, said interest rates should stay near zero until the jobless rate falls to at least 6.5 percent.

But Dallas Fed President Richard Fisher said the U.S. central bank needs to not set a limit on the amount of assets it is willing to buy.

[Reuters]

ekathimerini.com , Wednesday November 28, 2012 (09:52)  
Nissan recalling 260,000 vehicles globally with Takata air bags
Arrivals show increase in January-June 2014 period
TBEX brings together 800 travel bloggers in Athens
Athens weighs its LNG and CNG options
Samaras to represent Anastasiades at European Council meeting
Greek Prime Minister Antonis Samaras is to represent Cypriot President Nicos Anastasiades at the European Council and a European conservative leaders' meeting on Thursday after the latter wa...
Cyprus president to sit out EU summit due to high blood pressure
Cyprus President Nicos Anastasiades was admitted to a hospital in Brussels on Thursday morning following repeated nosebleeds caused by high blood pressure. He was discharged a few hours late...
Inside News
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Defusing a crisis
The crisis in Cyprus is escalating rapidly and defusing it is an extremely delicate and complicated procedure that will inevitably lead to losses for the weakest of the two sides. The course...
EDITORIAL
PM needs to step up
The public perception of the government is anything but good right now. The coalition is projecting an image of discord and constant disputes show that key ministers are unable to stay on th...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Nissan recalling 260,000 vehicles globally with Takata air bags
2. Samaras to represent Anastasiades at European Council meeting
3. Arrivals show increase in January-June 2014 period
4. Cyprus president to sit out EU summit due to high blood pressure
5. Strong winds hamper sea travel
6. TBEX brings together 800 travel bloggers in Athens
more news
Today
This Week
1. Strong winds hamper sea travel
2. TBEX brings together 800 travel bloggers in Athens
3. Cyprus president to sit out EU summit due to high blood pressure
4. Arrivals show increase in January-June 2014 period
5. Samaras to represent Anastasiades at European Council meeting
6. Nissan recalling 260,000 vehicles globally with Takata air bags
Today
This Week
1. Coalition shooting itself in the foot
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Greece’s closed society is central to its current malaise
4. The past, present and future of the Greek debt crisis
5. Greece must stick to reforms, says Schaeuble
6. At least 11 banks to fail European stress tests, three in Greece, report says
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.