TOKYO: The euro rose against the dollar and yen in Asia on Monday amid speculation that the International Monetary Fund is planning an $800 billion financing plan for debt-ridden Italy.
The euro climbed to $1.3300 and 103.26 yen in Tokyo afternoon trade from $1.3240 and 102.90 yen late Friday in New York where the single European currency had fallen at one point to $1.3212, its lowest point since October 4.
The dollar edged down to 77.64 yen from 77.72 yen.
Italy's La Stampa newspaper reported Sunday that the IMF could bail out Italy with up to 600 billion euros as newly installed Prime Minister Mario Monti comes under pressure to speed up austerity measures.
"This story has given the euro and Australian dollar a boost ... telling us a lot about positioning in the currency markets of late," National Australia Bank said in a client note.
However, it warned: "Note that an IMF budget increase would require parliamentary approvals from the large members such as the United States so is no 'fait accompli'."
The bank added that the possible IMF support signalled "alternatives are being desperately sought" to an existing European bailout fund, known as the European Financial Stability Facility.
The euro eased later Monday from the day's high of above $1.33 amid claims the Italian newspaper report was not credible, said a dealer at a major Japanese trust bank, according to Dow Jones Newswires.
Another source said: "I think it is baseless... There has been no talk on something like that among (Group of Seven) authorities."
The dollar was mixed against other Asian currencies. It fell to 1,154.20 South Korean won from 1,161.90 on Friday, to Sg$1.3047 from Sg$1.3117, to Tw$30.41 from Tw$30.48 and to 43.81 Philippine pesos from 43.85.
But the greenback firmed to 31.31 Thai baht from 31.23 and to 9,120.00 Indonesian rupiah from 9,035.00.
