TOKYO: The euro inched higher on Tuesday after plunging in the wake of the leftist Syriza party's victory in Greek elections, while the ruble dropped after Standard & Poor's cut Russia's debt rating to junk.
In Tokyo, the common currency bought $1.1251 and 133.31 yen, up from $1.1234 and 133.12 yen in New York.
The unit had briefly tumbled to $1.1098 -- its lowest level since September 2003 -- in Asia on Monday, owing to fears the poll result could usher in a Greek exit from the eurozone.
The choice of Syriza leader Alexis Tsipras as prime minister following the weekend polls has raised the prospect of tough talks with Greece's creditors over easing rescue terms, if not more debt restructuring, and likely greater turbulence in the markets.
But "they don't seem to have what I'd view as a far-left goal -- it's not like they're going to come out and default on all their debt," Matt Derr, a foreign-exchange strategist at Credit Suisse Group AG, told Bloomberg News.
"The euro is getting a bit of a relief rally."
National Bank of Australia added: "Perhaps the market rightly or wrongly is pinning some hopes on Mr. Tsipras being more conciliatory. In any case, the market will be paying close attention to news that could well see more euro volatility for now at least."
The euro also won a measure of support from a new poll on Monday that showed German businesses were confident about the outlook for Europe's biggest economy.
In other trading, the dollar slipped to 118.21 yen from 118.49 yen as traders await the start of a two-day Federal Reserve policy meeting later in the day.
Markets are keen for clues about any change in the timeline for an interest rate hike, currently expected around the middle of the year.
The ruble, meanwhile, sank after a deadly rocket attack on Mariupol, Ukraine, by pro-Russian rebels raised the prospect of more Western sanctions on Moscow while ratings agency Standard & Poor's cut Russia's debt rating to junk level.
On Tuesday, the dollar bought 68.27 rubles, up from 67.18 rubles the previous day.
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