Euro slips against dollar, yen on Greece fears

SINGAPORE: The euro weakened against major currencies in Asia Monday ahead of a European Central Bank (ECB) meeting that will discuss a second bailout package for debt-laden Greece, analysts said.

The euro bought $1.4077 in afternoon trade from $1.4156 in New York late Friday while it also fell to 111.25 yen from 112.02 yen.

The greenback edged down to 79.03 yen from 79.12 yen on Friday.

Skittish traders were backing out from the euro ahead of the ECB's meeting on Thursday, Philip Wee, senior currency economist of DBS Group Research in Singapore, told AFP.

He told said investors were reducing their long positions as they considered the summit "an event risk right now".

While a second bailout for Greece is due to be discussed, comments by ECB's president Jean-Claude Trichet and German Chancellor Angela Merkel at the weekend added "some uncertainties" to the market, Wee said.

Trichet on Sunday said the ECB could not accept defaulted bonds as collateral and Europe's governments would have to intervene should Greece default.

And Merkel called on Greece's private sector to increase its involvement in shouldering Athens' financial burden as pressure mounts for a radical solution to the country's debt problems.

Greece's financial woes have raised concerns of a spillover into Italy and Spain, which many analysts fear could lead to another global financial crisis.

The dollar was higher against most other Asian currencies, strengthening to Sg$1.2195 from Sg$1.2164 on Friday, to 1,061.47 South Korean won from 1,057.53, to 43.08 Philippine pesos from 42.92 and to Tw$28.91 from Tw$28.87

However, it fell to 30.09 Thai baht from 30.12 and to 8,525.00 Indonesian rupiah from 8,538.75.

Copyright APP (Associated Press of Pakistan), 2011

Copyright AFP (Agence France-Presse), 2011

-AFP