Euro eases on profit-taking ahead of Greek vote

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GMT - 3 Hours Euro eases on profit-taking ahead of Greek vote

Post by εﺓз• » ιη∂αġι яσ¢χ « • on Wed Sep 14, 2011 1:34 pm

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TOKYO: The euro eased Wednesday on profit-taking following its overnight rise, with market players eyeing the Greek vote on austerity measures vital for Athens to avoid debt default, dealers said.

The euro edged down to $1.4351 in Tokyo morning trading from $1.4367 in New York late Tuesday. The European single currency also fell to 116.29 yen from 116.47 yen.

The dollar was almost flat at 81.03 yen against 81.08 yen.

The euro was weighed by investors' moves to lock in profits from the its overnight gain, but its downside was supported by an optimistic view of the Greek vote later in the day, dealers said.

"The market is awaiting the outcome of the vote that the parliament is widely expected to pass," said Gen Kawabe, dealer at Chuo Mitsui Trust and Banking.

"As in the case of the confidence vote in the Greek cabinet last time, there is an optimistic mood spreading" ahead of the vote, Masafumi Yamamoto, chief FX strategist at Barclays Capital in Tokyo said.

The euro got a lift Tuesday amid optimism that Greece would pass tough measures required under an European bailout of the country to avoid a debt default, despite fierce protests against the measures in Athens.

The vote is eagerly awaited by other debt-ridden eurozone countries fearing dangerous knock-on effects.

The new measures were drawn up to meet European Union and International Monetary Fund conditions for further bailout support, after a 110-billion-euro rescue last year.

If passed, these creditors could authorise as early as Sunday 12 billion euros in blocked funds needed to stave off bankruptcy for the Athens government when massive repayments fall due in mid-July.

On Tuesday, police fired tear gas on protestors on the first day of a 48-hour general strike against the belt-tightening package. (AFP)
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