Euro steady after ECB dismisses Greek fears
Saturday, 10 April 2010
TOKYO, Apr 9 (AFP): The euro was steady in Asian trade Friday after European Central Bank Chief Jean-Claude Trichet said the European Union (EU) plan to rescue Greece can work, dealers said.
The euro fetched US$1.3356 in Tokyo afternoon trade, nearly unchanged from $1.3359 in New York trade late Thursday. It rose against the yen to 124.98 in Tokyo from 124.75.
The dollar stood at 93.58 yen, up from 93.33 in New York.
"The European and US markets took Trichet's remarks as a headline for a steady euro," said Daisuke Karakama, market economist at the forex division of Mizuho Corporate Bank.
"And the Tokyo market took over the momentum," Karakama added. "However, his remarks do not mean an end to the Greece trouble. Fears can resurface anytime in the future."
Speaking after the ECB kept its main interest rate steady at a record low of 1.0 per cent, Trichet said that a European Union plan unveiled last month to help Greece, if needed, was realistic.
"Taking all the information I have, a default is not an issue for Greece," Trichet told a press conference after markets pushed the cost of borrowing for Greece to record highs above 7.0 per cent.
Dealers also said the market was closely watching as US Treasury Secretary Timothy Geithner held talks in Beijing on economic ties amid signs China may be ready to act on calls for a more flexible yuan.
The last-minute visit Thursday came just days before Chinese President Hu Jintao heads to Washington for an international summit on nuclear security-suggesting the two countries are getting their relationship back on track.
Bank of Japan governor Masaaki Shirakawa held talks with Prime Minister Yukio Hatoyama early Friday afternoon to discuss possible joint measures to tackle deflation, dealers said.
In regional trade, the dollar declined to 32.29 Thai baht from 32.37 on the previous day and to 1.3947 Singapore dollars from 1.3970.
It also fell to 9,033 Indonesian rupiah from 9,068, to 31.56 Taiwan dollars from 31.59 and to 1,118.70 South Korean won from 1,123.75 but rose to 44.82 Philippine pesos from 44.64.
The euro fetched US$1.3356 in Tokyo afternoon trade, nearly unchanged from $1.3359 in New York trade late Thursday. It rose against the yen to 124.98 in Tokyo from 124.75.
The dollar stood at 93.58 yen, up from 93.33 in New York.
"The European and US markets took Trichet's remarks as a headline for a steady euro," said Daisuke Karakama, market economist at the forex division of Mizuho Corporate Bank.
"And the Tokyo market took over the momentum," Karakama added. "However, his remarks do not mean an end to the Greece trouble. Fears can resurface anytime in the future."
Speaking after the ECB kept its main interest rate steady at a record low of 1.0 per cent, Trichet said that a European Union plan unveiled last month to help Greece, if needed, was realistic.
"Taking all the information I have, a default is not an issue for Greece," Trichet told a press conference after markets pushed the cost of borrowing for Greece to record highs above 7.0 per cent.
Dealers also said the market was closely watching as US Treasury Secretary Timothy Geithner held talks in Beijing on economic ties amid signs China may be ready to act on calls for a more flexible yuan.
The last-minute visit Thursday came just days before Chinese President Hu Jintao heads to Washington for an international summit on nuclear security-suggesting the two countries are getting their relationship back on track.
Bank of Japan governor Masaaki Shirakawa held talks with Prime Minister Yukio Hatoyama early Friday afternoon to discuss possible joint measures to tackle deflation, dealers said.
In regional trade, the dollar declined to 32.29 Thai baht from 32.37 on the previous day and to 1.3947 Singapore dollars from 1.3970.
It also fell to 9,033 Indonesian rupiah from 9,068, to 31.56 Taiwan dollars from 31.59 and to 1,118.70 South Korean won from 1,123.75 but rose to 44.82 Philippine pesos from 44.64.