By: Barbara Zigah
The Euro continues to be under pressure in Asian trade as the Greek government considers new terms and conditions to the second bailout loan, even as the deadline for their agreement looms. The Greek government has only until noon (GMT) today to advise the E.U. as to whether or not they accept the offered terms, else the €130 billion will not be released and Greece will take a step closer to a disorderly default. As reported at 11:19 a.m. (JST) in Tokyo, the Euro was trading down 0.4% versus the U.S. Dollar, holding at $1.3105 after dropping to $1.3075 earlier in the session. Analysts expect that the Euro could test $1.30 again today.
The Greek saga overshadows the euphoria felt after Friday’s release of U.S. labor data which was unexpectedly robust and included another decline in the unemployment rate to 8.3%, a 3-year low. That news helped to lift the U.S. Dollar against the Japanese Yen, which traded at 76.74 Yen, a gain of 0.7%. One currency strategist says that she expects the Japanese Yen will once again continue to power higher over the greenback, given the historical relationship between the pair. The U.S. Dollar Index, which measures the greenback’s value against a weighted basket of major currencies, rose to 79.00 .DXY.