Euro gains further against dollar

TOKYO: The euro rose further against the dollar in Asia Wednesday, helped by easing concerns over Greece's debt crisis, dealers said.

The dollar was softer, taking a cue from weak readings on US economic indicators released on Tuesday, including regional manufacturing and consumer confidence, dealers said.

The yen showed some resilience on buybacks after coming under pressure on Tuesday after ratings agency Moody's announcement that it could cut Japan's sovereign debt rating within three months.

The euro bought $1.4416 in Tokyo morning trading, against $1.4397 in New York late Tuesday. The European single currency fetched 117.28 yen, almost flat from 117.26 yen. The dollar eased to 81.35 yen from 81.50 yen.

Sentiment on the euro brightened in the wake of a Wall Street Journal report Tuesday saying Germany was considering abandoning its push for an early rescheduling of Greek bonds and showing flexibility on new aid.

"The report temporarily provided relief about Greece's debt crisis," said Teppei Ino, analyst at the Bank of Tokyo-Mitsubishi UFJ.

"But downside risks linger ahead of an EU economic and finance ministers' meeting scheduled for mid-June."

Berlin has been holding back on more money for Greece as it appears unlikely Athens will be able to return to markets next year to refinance debt as originally foreseen under its 110-billion-euro EU-IMF rescue announced in May 2010.

Eurozone junior finance ministers meeting Wednesday in Vienna will go over Greece's debt problems, including the possibility of fresh aid, a European source told AFP on Tuesday.

Their agenda will cover Greece's financial situation and possible new aid on the basis of a draft report by experts from the European Commission, International Monetary Fund and European Central Bank, the source said.

Copyright AFP (Agence France-Presse), 2011