By: Barbara Zigah
Greek’s ability to service its own debt burden was a question raised by investors in Asian trading today, bringing the single currency Euro lower versus the Japanese Yen. As reported at 1:10 p.m. (JST) in Tokyo, the common currency slipped against the Yen, trading at 125.58 Yen, a loss of .5%; yesterday, the Euro lost .8% on the widening yield spread of Greek/German bonds. Greek government officials requested a meeting of the ECB, IMF and E.U. Commission to discuss the Greek rescue plan; the meeting is expected to take place on Monday in Athens.
The Japanese Yen was also boosted by market players closing out their short positions before the weekend. Investors, who continue to be wary that the Chinese government could revalue its currency soon, are moving out of riskier currencies such as the Australian Dollar and the Pound Sterling. At one point in the session, the Aussie fell nearly 1% to trade against the Japanese currency at 86.00 Yen; it did later firm slightly to 86.30 Yen, a decline of .8% in the trading day. The likelihood of a deadlocked U.K. Parliament, especially after a recent televised debate in which the two frontrunners were bested by a third party candidate, continues to negatively affect the Pound Sterling which slipped to 143.03 Yen, a loss of .6%.