By Martin Vaughan Of DOW JONES NEWSWIRES SINGAPORE (Dow Jones)--The euro stabilized in Asia after sliding to its lowest against the U.S. dollar in more than a week, as European Union leaders pressed Greece to accept a proposed debt bailout deal or leave the euro zone. The euro also was pressured by disappointment that U.S. Federal Reserve Chairman Ben Bernanke wasn't more explicit about steps the Fed might take to further ease policy and support growth, traders and analysts said. But the single currency staged a modest recovery late in Asia. Risk-sensitive currencies such as the Australian and New Zealand dollars were hit harder, however. A Friday vote of confidence in Greek Prime Minister George Papandreou's government, which market watchers expect to succeed, could temporarily relieve pressure on the euro, but the common currency is likely in for a bumpy ride in the lead-up to a larger test: a referendum tentatively slated for Dec. 4 on whether Greece should accept further austerity measures. International Monetary Fund chief Christine Lagarde said the IMF will disburse its next tranche of aid to Athens only after that vote. German Chancellor Angela Merkel framed the outcome of the vote as answering the question: "Does Greece want to remain part of the euro zone or not?" "We are now playing a high-risk game of chicken," BNP Paribas analysts wrote in a research note. "(French) President (Nicolas) Sarkozy and Mrs Merkel have taken an unequivocal stance: if Greece does not deliver on the deal agreed in October, they are committed to withholding funds. If that happens and we have a disorderly default then the markets will be very messy indeed." The euro was supported Thursday by demand from Middle Eastern investors buying on dips, traders said, and by European companies repatriating euros ahead of the financial year-end. The yen was steady with the U.S. dollar hovering above the psychologically key Y78.00 in thin trade as Japanese banks were closed for a national holiday. That the level is holding three days after Japanese authorities intervened to weaken the yen is surprising to some who had questioned the intervention's effectiveness. "So far I would deem it fairly successful," said Jesper Bargmann, head of G11 spot fx trading at RBS. "It must be quite comforting for (the Japanese authorities) to see it holding around Y78.00. This was a record amount they put into it, and the market has taken notice." At 0550 GMT, the U.S. dollar was at Y78.01. The euro was at $1.3712, off its intra-day low of $1.3665 but still down from $1.3745 late in New York. The Aussie dollar fell by nearly a dollar against the greenback in Asian hours Thursday, trading at $1.0248 from $1.0342 late in New York. Analysts said a policy interest rate decision later in the global day by the European Central Bank is unlikely to have a significant impact on currencies since they expect the bank to leave the rate unchanged. Similarly, a meeting of the Group of 20 industrialized and developing nations that gets underway Friday in Cannes, France, isn't seen as holding much promise or peril for currencies. "There's not a lot of room for disappointment from the G-20 at this stage," said BNP Paribas currency strategist Robert Ryan. Interbank Foreign Exchange Rates At 01:50 EDT / 0550 GMT Latest Previous %Chg Daily Daily %Chg Dollar Rates Close High Low 12/31 USD/JPY Japan 78.00-02 78.03-06 -0.04 78.16 78.00 -3.83 EUR/USD Euro 1.3710-12 1.3746-48 -0.26 1.3754 1.3666 +2.39 GBP/USD U.K. 1.5907-12 1.5947-51 -0.25 1.5961 1.5878 +1.93 USD/CHF Switzerland 0.8847-52 0.8838-46 +0.09 0.8876 0.8834 -5.35 USD/CAD Canada 1.0174-78 1.0141-46 +0.32 1.0215 1.0134 +2.30 AUD/USD Australia 1.0253-58 1.0344-47 -0.87 1.0348 1.0210 +0.21 NZD/USD New Zealand 0.7849-52 0.7907-14 -0.76 0.7921 0.7808 +0.69 Euro Rate EUR/JPY Japan 106.93-98 107.20-54 -0.39 107.36 106.68 -1.55 -By Martin Vaughan, Dow Jones Newswires; +65 6415 4033; martin.vaughan@dowjones.com

Source