WSJ:WORLD FOREX: Euro Falls To More Than 10-Year Low Vs Yen
-- Euro sharply lower against yen, dollar over worries about Greek situation
-- Reports say Germany looking at "Plan B" measures in case of Greek default
-- Euro decline brings talk of possible euro-buying by Japan, but seen as unlikely
By Takashi Mochizuki
Of DOW JONES NEWSWIRES
TOKYO -(Dow Jones)- The euro fell sharply against the yen and dollar in Asia on Monday as heightened concerns over Greece and reports of German contingency planning in case of a default by the southern European country weighed on the common currency.
The euro slid to Y104.10, its lowest since June 2001, and to $1.3494, its lowest since February 16.
Such was the pace of the euro's decline that it produced talk in the market that Japan could target euro-buying intervention, which would be the first such move since May 2003.
Greece's government announced Sunday that it will impose a new property tax to cover a EUR2 billion shortfall in its budget targets this year. Covering the gap had been a key issue in talks with its international creditors in exchange for additional financial support.
Earlier this month, talks were suspended in a dispute over whether Greece would need to take further measures. Without the aid, Greece is expected to run out of money within weeks, according to Greek officials.
"We are watching Greece, and only Greece," said Satoshi Tate, a senior dealer at Mizuho Corporate Bank. "Conditions are getting very serious and everyone is worried how the issue will unfold."
Adding to concerns were weekend reports that Germany was preparing standby measures in case Greece defaults on its debts, including a report in Der Spiegel magazine on Saturday that the German government is preparing two contingency plans.
The report directly contradicts repeated assurances by German Finance Minister Wolfgang Schaeuble over the weekend that the government has not engaged in such planning.
At 0550 GMT, the euro was down at Y104.40 compared with Y105.94 late Friday in New York, and at $1.3531 from $1.3648.
"It's very hard to expect that the euro will find supportive ground," said a senior dealer at a major bank in Tokyo.
"Expectations may increase that Japan could step in to buy the euro for the yen," said Barclays Capital chief Japan currency strategist Masafumi Yamamoto. But he said that with no expectation of any support from European nations, there is little chance at present.
At 0550 GMT, the dollar was at Y77.15 from Y77.62 late on Friday.
The ICE Dollar Index was at 77.655 from 77.231 on Friday.
Interbank Foreign Exchange Rates At 0150 EDT / 0550 GMT
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