Euro down amid jitters over Greek debt talks
TOKYO – The euro fell against other currencies in Asia on Monday with investors jittery over dragging talks on Greek sovereign debt problems.
The euro bought $1.3108 and 100.33 yen in Tokyo morning trade, down from $1.3156 and 100.80 yen in New York late Friday. The dollar changed hands at 76.53 yen, almost flat from New York.
The euro may stay under pressure against the dollar and yen on Monday as uncertainty over the future of the Greek debt negotiation weighs on the common currency, said Sumino Kamei, senior analyst at Bank of Tokyo-Mitsubishi UFJ.
“The odds are against the euro today, and the euro is expected to lose some ground against the yen and the dollar,” she told Dow Jones Newswires.
Athens has been in talks with the European Union, the International Monetary Fund and the European Central Bank — known as the “troika” — on further action needed to unlock a new eurozone rescue deal worth 130 billion euros ($171 billion) pending since October.
Pressure is also high for an agreement with private lenders to wipe out part of the 350-billion-euro Greek debt, as Athens faces loan repayments of 14.4 billion euros ($19 billion) on March 20.
The measures demanded by the troika reportedly included a 20-percent cut to the monthly minimum wage of 750 euros ($985); a 15-percent cut in supplementary pensions; and 15,000 civil service redundancies this year.
Leaders from Greek political parties are expected to resume talks Monday after failing to bridge differences on reforms required by the troika.
An agreement was supposed to have been reached mid-last week, National Australia Bank noted.
“The constant delays and negative comments from European leaders raise concerns that Greece will not meet the necessary conditions for more funds. That means disorderly default,” it said in a note.
