Euro rises in Asia on hopeful Greek news

TOKYO: The euro firmed against major currencies in Asian trade Tuesday as investors were lifted by reports that officials were close to a deal on helping Greece avoid defaulting on its debt.

The single currency rose to $1.4318 in Tokyo early trade, up from $1.4277 in New York late Monday. It also firmed to 115.63 yen from 115.51.

The dollar eased to 80.78 yen from 80.90 yen.

On Monday Greek Prime Minister George Papandreou begged the parliament in Athens to pass drastic austerity measures and keep the country "on its feet".

Dealers in Tokyo said investors are cautiously watching the vote, which must be passed for Athens to receive the next slice of a bailout package from the European Union and IMF and pay its debts next month.

However, French President Nicolas Sarkozy said France was working with private lenders on a new, long-term Plan B that would see banks roll over their debt in case the Greek vote fails.

At the same time Italian banks said they have begun talks on restructuring the Greek debt they hold.

"The next step is not a default of Greece," an official said.

A senior dealer at a major Japanese bank said: "It's not 100 percent sure that the (austerity) package will be passed as some members said they'll vote against it."

"So any bullish-euro bets must be done with a sense of caution."

Copyright AFP (Agence France-Presse), 2011