Thursday October 2, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Euro falls on lack of detail on Greece deal

The euro fell against the yen and dollar on Wednesday as investors took profit on gains made after euro zone policymakers agreed on a new debt target for Greece.

The yen also rose against the dollar as market players pared back expectations of aggressive monetary easing by the Bank of Japan and concerns about the U.S. fiscal cliff increased.

International lenders agreed a plan to cut Greek debt earlier this week, allowing the country to avoid a chaotic default and helping push the euro to a one-month high of $1.3010.

But a lack of detail and growing skepticism over how Athens will implement the reforms needed to reach the new targets made investors wary of pushing the single currency higher.

"(A deal on Greece)is a passing of the event risk so it is people taking profits on the move higher, said Saeed Amen, currency strategist at Nomura.

The euro dipped 0.2 percent to $1.2921, with the 55-day moving average at $1.2918 providing support.

With the Greek deal out of the way analysts said investors were focusing on the U.S. fiscal cliff -- a combination of automatic tax hikes and spending cuts due to kick in next year that could tip the world's biggest economy into recession.

Barclays strategists said Europe's muddle-through approach on Greece threatened to amplify the impact on the euro of the outcome of the U.S. talks.

"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 wrote in a note.

The U.S. Congress pushed toward compromise on Tuesday on the fiscal cliff, but agreement still appeared elusive despite growing pressure from American business interests for action.

Comments by U.S. Senate Majority Leader Harry Reid about the lack of progress by Democratic and Republican lawmakers also fanned concerns, and added to demand for the dollar and yen against perceived riskier currencies.

The yen rose broadly as investors unwound long dollar and euro positions. The Japanese currency 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 premier, has called for more aggressive easing, but some investors have begun to question how much impact he will have on monetary policy.

"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.

The dollar fell 0.4 percent to 81.80 yen, retreating from last week's 7-1/2 month high of 82.84 yen. Market players cited demand for the dollar at 81.70 yen and said this was likely to check the Japanese currency's gains.

The euro also fell against the yen, dropping 0.7 percent on the day to 105.65 yen, moving away from a seven-month high of 107.135 yen set on Monday.

[Reuters]

ekathimerini.com , Wednesday November 28, 2012 (13:31)  
ECB holds rates, shifting focus to new purchase plans
Moscovici in charge of budgets seen prompting EU deficits debate
European stocks decline as investors await ECB policy meeting
Attica Bank said to have rejected notable offers
Six face prosecutor for bank robberies, terrorist activity
Six people detained in Athens and Thessaloniki on Wednesday in connection to bank robberies and possible terrorist activity faced a prosecutor on Thursday. The suspects, four Greek men, aged...
Explosive device found at Athens Stock Exchange building
An investigation by the Greek counter-terrorist unit was under way in Athens on Thursday after an envelope containing an explosive device was discovered in the mail room of the Athens Stock ...
Inside News
SOCCER
Rosenberg confident after win over Olympiakos
Malmoe captain Markus Rosenberg scored twice in the Swedes' 2-0 win over Olympiakos on Wednesday and illustrated his confidence in the team after the game. Rosenberg capitalized on slack def...
SOCCER
Rosenberg punishes Olympiakoss errors at Malmoe
A disappointing Olympiakos got the worst possible result from its clash with Malmoe in Sweden for the Champions League, going down 2-0 on Wednesday due to its own defensive errors and attack...
Inside Sports
COMMENTARY
Theres money, still
The decision reached by Prime Minister Antonis Samaras and his deputy, Evangelos Venizelos, to seek a vote of confidence in Parliament on October 6, is a final attempt to restore order in th...
EDITORIAL
Confidence and corrections
The government must secure a vote of confidence in Parliament. Any other development would see the country enter very turbulent waters. Prime Minister Antonis Samaras and his cabinet must ag...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Rosenberg confident after win over Olympiakos
2. ECB holds rates, shifting focus to new purchase plans
3. Six face prosecutor for bank robberies, terrorist activity
4. Explosive device found at Athens Stock Exchange building
5. Kasidiaris-Kanelli hearing postponed to December 12
6. Pensioners stage rally in central Athens
more news
Today
This Week
1. Doctors, medical employees strike over staff shortages, wages
2. Court to hear Kasidiriaris-Kanelli case
3. Air travel to run smoothly after air traffic controllers' weekend strike deemed illegal
4. European stocks decline as investors await ECB policy meeting
5. Moscovici in charge of budgets seen prompting EU deficits debate
6. Pensioners stage rally in central Athens
Today
This Week
1. Greece may opt for unusual president to avoid snap polls, Venizelos says
2. Woman allegedly buried alive by accident in northern Greece
3. Salaries in Greece continue to slide, dipping 1.4 pct in Q2
4. Should you bet with Kissinger on where the world is heading?
5. Cypriots divided by 1974 war seek Shariah hub
6. The shocking thought of euro-dollar parity
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.