By Lisa Twaronite, MarketWatch
TOKYO (MarketWatch) — The dollar slipped against major counterparts on Thursday, while the euro gained on expectations that Greece’s parliament will pass more legislation needed to secure funds to stave off a default.
On Wednesday, the Greek parliament approved a 78 billion-euro ($112.2 billion) package of additional austerity measures and asset sales. Analysts also expect Greek lawmakers to approve later Thursday the steps needed to implement the measures. Read about Greece approving austerity plan.
“A positive outcome would pave the way for an imminent disbursement” of the next round of bailout funds, said Frederik Ducrozet, economist at Credit Agricole.
“However, the risk now is for the government to face a number of amendments on specific reforms,” Ducrozet said in a note to clients.
The euro EURUSD +0.49% rose to $1.4507 from $1.4431 in late North American trading on Wednesday. See real-time currency quotes and tools.
The dollar index DXY -0.48% , which measures the performance of the U.S. unit against a basket of six currencies, slipped to 74.321 from 74.682 late Wednesday.
The British pound GBPUSD +0.25% rose to $1.6106, from $1.6061 late Wednesday.
Against the yen, the dollar USDJPY -0.53% dropped to ¥80.43, from ¥80.89 late Wednesday.
Month-end pressure added to the greenback’s downtrend in Asian trading on Thursday. Japanese exporters often repatriate profits at the end of the month.
However, this summer, Japanese manufacturers will adjust their work schedules to accommodate expected power shortages. Major auto makers will close on Thursdays and Fridays and operate on weekends instead, when power demand is lower.
“This implies that auto producers are unlikely to be active yen-buyers on Thursdays and Fridays, but instead their yen purchases may concentrate on Mondays,” said Tohru Sasaki, head of Japan rates and foreign-exchange research at J. P. Morgan Chase in Tokyo.
Against the yen, the dollar and the euro “could start trading relatively firm on Thursdays and Fridays, but remain suppressed on Mondays during the next three months,” Sasaki said in a research note.
Lisa Twaronite is MarketWatch's Tokyo bureau chief.
