MW:Euro slips versus dollar on unresolved Greek talks
By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) — The dollar strengthened against the euro and other major currencies in subdued holiday trading Monday in Asia, after talks between Greece and the debt-strapped nation’s bondholders failed to yield any definitive outcome.
The euro EURUSD +0.29% was fetching $1.2895 by mid-afternoon in Tokyo, down from $1.2936 in late North American trade Friday.
The dollar’s gains against the euro came after a 2% advance for the European currency last week, partially aided by hopes that Greece and the Institute of International Finance might reach an agreement on the terms of Greece’s debt repayment. The IIF is negotiating on behalf of Greece’s private-sector lenders.
“The odds that negotiations will be dragged out or worse, break down, are growing by the minute. Headlines out of Greece and the rest of Europe will remain the single most important driver of the euro and currencies in general in the coming week,” said Kathy Lien, director at GFT Forex.
Lien said that in addition to news on Greece, focus will also be on Monday’s meeting of European finance ministers, as well as the annual meeting of the World Economic Forum in Davos, Switzerland. Read full story on what to expect from Davos.
The IIF’s top negotiator, Charles Dallara, left Athens on Saturday without a final deal with the government, according to a report in The Wall Street Journal. Read full report.
The U.S. dollar index DXY +0.20% , which gauges the greenback’s performance against a basket of six other currencies — including the euro and the Japanese yen — rose to 80.308 from 80.148.
Against the Japanese unit, the dollar USDJPY +0.13% was fetching ÂĄ77.04, up from ÂĄ76.90 on Friday, while the euro EURJPY +0.42% was changing hands for ÂĄ99.34 versus ÂĄ99.55.
The British pound GBPUSD -0.09% was buying $1.5553, down just fractionally from $1.5559 Friday.
The performance came in thin regional trading, with Japanese, Australian and Indian markets the only major ones open. Financial markets in China, Hong Kong, South Korea, Taiwan and Singapore were among those closed for Lunar New Year holidays.
Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.
