Euro down on Greek debt woes

The single currency slipped to $1.4340 in afternoon trade from $1.4348 late on Friday in New York. The euro was at 115.52 yen against 116.19 late Friday in Tokyo.

The European common currency faced continued selling pressure following news late last week that European authorities were looking at a potential Greek debt "rescheduling". The euro saw its steepest one-day sell-off for a month on Friday.

"The current level of the euro still is too high for us," said Daisuke Karakama, market economist at forex division of Mizuho Corporate Bank. "It's not too wise to keep a long position now."

The European Commission said on Friday that international backers of a second bailout plan to ward off the threat of Greece defaulting on its massive debts are now studying a possible "rescheduling".

In Athens, Greek Finance Minister George Papaconstantinou said the debate over a new bailout package for Greece appears to be evolving towards the voluntary participation of the private sector.

However a spokesman for Moody's credit rating agency warned that any action would be considered as Greece defaulting on its debts if it is deemed that private investors were being obliged to reschedule their debts rather than merely asked to do so in a truly voluntary manner.

The European Central Bank's tame inflation outlook also dented market expectations for interest rate rises, dealers said.

"Since the eurozone economy has fundamental problems, selling pressure on the euro is unlikely to change for now," Karakama said.

The dollar fetched 80.53 yen against 80.31 yen in New York late Friday.

The US unit was higher against regional Asian currencies, rising to Sg$1.2382 from Sg$1.2304 on Friday, to 8,535.25 Indonesian rupiah from 8,519.50 and to 30.45 Thai baht from 30.39.

The unit gained to 1,085.68 Korean won from 1,082.43, to Tw$28.82 from Tw$28.74, and to 43.39 Philippine pesos from 43.28.

Copyright AFP (Agence France-Presse), 2011