TOKYO—The euro rose against the dollar and the yen Monday in Asia amid some relief after Greece opinion polls showed Sunday that the pro-bailout New Democracy conservatives overtook the far-left anti-austerity Syriza ahead of a general election set for June 17.
The yen's downside was limited, however, on buying amid expectations for bids from Japanese exporters at month-end, in otherwise quiet trading with the U.S. market closed for a holiday Monday, Tokyo dealers said.
The rise in support for Greece's New Democracy party should give it the ability to form a coalition government with a smaller socialist party that shares its backing for reforms Greece agreed to with European and international creditors in exchange for a EUR130 billion bailout package. The outcome of earlier elections held May 6 were inconclusive.
The latest developments prompted market participants to trim some of their massive bets on the euro's downside as concerns eased that Greece would exit the euro-zone in the near term.
On Friday, a report from the Commodity Futures Trading Commission showed that as of the preceding Tuesday, traders on the Chicago Mercantile Exchange held the largest net wagers on the euro's fall and the dollar's climb since at least 2007.
"As for Greece, there is a sense of relief for now amid expectations that pro-austerity parties are going to win," said Michiyoshi Kato, senior vice president of forex sales at Mizuho Corporate Bank.
But analysts say it is premature to identify any lasting trends, as the euro-zone copes with a range of other problems.
"You can't relax your guard as concerns remain over the problem in Spain. There still is a good likelihood that the euro will fall to test the $1.20 mark," Mizuho's Kato said.
Elsewhere, market participants largely shrugged off comments by Swiss central bank President Thomas Jordan in an interview published Sunday with Swiss weekly Sonntagszeitung. Jordan said Switzerland may introduce capital controls to fight a sharp rise in the franc in the case of a possible euro-zone collapse.
"We need to remember that this is a contingency plan," said Masashi Murata, senior currency strategist at Brown Brothers Harriman in Tokyo. He added, however, that Switzerland contemplating such a scenario shows how close a Greek exit might be, and said he expects similar views from other financial institutions soon.
The market will focus on any European debt-related headlines for the remainder of the global day.
The euro was at $1.2590 as of 0450 GMT from $1.2516 late Friday in New York and at Y99.98 from Y99.68, according to EBS.
The dollar was at Y79.41 from Y79.68 and at CHF0.9543 from CHF0.9596.
The U.K. pound was at $1.5699 from $1.5665.
The ICE Dollar Index, which tracks the U.S. dollar against a basket of currencies, was at 81.991 from 82.396.
-By Kosaku Narioka, Dow Jones Newswires; 813-6269-2784; kosaku.narioka@dowjones.com
-Alex Martin in Tokyo contributed to this article.
