currencies market Euro Falls Yen on Greek Worries september 12 2011

Indonesia stock info - currencies market Euro Falls Yen on Greek Worries september 12 2011 ; The euro fell sharply against the dollar in early Asian trade 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.

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 effort since May 2003.

Greece's government announced Sunday it will impose a new property tax in order 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.

The euro fell to $1.3550 in early Asian trade from $1.3648 in late New York trade on Friday, according to data on EBS.

"It's very hard to expect that the euro will find supportive ground," said a senior dealer at a major bank in Tokyo.

The euro also remained near 10-year lows hit late Friday in New York, trading at Y105.39 from the Friday low of Y105.30, and compared with the close of Y105.94.

"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.

The dollar-yen picture was little changed meanwhile as both currencies rose against the distressed euro. The dollar was at Y77.52 from Y77.62 late on Friday.

Among other currencies, the dollar was at CHF0.8872 from CHF0.8840 while the British pound was at $1.5860 from $1.5841. The ICE Dollar Index was at 77.428 from 77.231 on Friday.

Interbank Foreign Exchange Rates At 20:50 EDT / 0050 GMT

                        Latest   Previous   %Chg    Daily    Daily   %Chg
Dollar Rates                                 Close            High    Low  12/31

USD/JPY Japan            77.56-58 77.42-50   +0.14    77.58    77.46  -4.38
EUR/USD Euro            1.3600-02 1.3585-90  +0.10   1.3622   1.3558  +1.57
GBP/USD U.K.            1.5855-60 1.5830-44  +0.13   1.5862   1.5826  +1.60
USD/CHF Switzerland     0.8865-68 0.8875-90  -0.18   0.8895   0.8858  -5.17
USD/CAD Canada          0.9979-84 0.9959-62  +0.21   0.9982   0.9964  +0.34
AUD/USD Australia       1.0406-10 1.0453-58  -0.45   1.0454   1.0398  +1.70
NZD/USD New Zealand     0.8175-80 0.8206-12  -0.39   0.8218   0.8164  +4.89

Euro Rates
EUR/JPY Japan           105.48-52      105.13-35  +0.25   105.57   105.10  -2.89



Related Post:

at 7:07 PM
Labels: ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)