TOKYO: The euro held firm against other major currencies in Asia on Friday as risk appetite grew on expectations that Greece will drop its controversial plan to call a referendum on the region's rescue package.
The single currency fetched $1.3807 and 107.74 yen in Tokyo morning trade, almost flat from late Thursday in New York where the unit rose on a surprise European rate cut and relief over the Greek backstep on the poll.
The dollar was almost flat against the Japanese currency, trading at 78.03 yen.
Greek Prime Minister George Papandreou on Thursday took a step back from his plan to hold a referendum, a move that had incensed European leaders trying to organise a rescue plan for the debt-ridden nation.
"Investor risk-appetite rebounded overnight after the Greek Prime Minister Papandreou signalled he won't call a referendum on its bailout package, averting the imminent risk of default on a possible 'no' vote," Australian National Bank said.
"Also supporting the improvement in risk-appetite was a surprise interest rate cut by the ECB," which is expected to support growth in the eurozone, it said.
The European Central Bank on Thursday cut its key interest rate by a quarter-point, a measure that had been considered unlikely, coming just after new chief Mario Draghi took control.
Market players were waiting for a key US payrolls report to be released later Friday, which could give a clue on whether the Federal Reserve will decide on another round of credit easing.
Comments
Comments are closed for this article.