TOKYO: The euro held its gains on Wednesday, the day after surging on growing optimism that Greece will hammer out a debt deal with its European partners and avoid a possible default.
In Tokyo, the single currency fetched $1.1469 and 135.04 yen, compared with $1.1479 and 134.96 yen in New York but sharply up from the levels around $1.13 and 132 yen seen in Tokyo earlier Tuesday.
The dollar rose to 117.74 yen, from 117.57 yen in US trade.
"The driver appears to be increased market optimism that a solution may be found and indeed is beginning to be worked out between Greece and its creditors," National Australia Bank said in a note.
But "there is a long way to go yet to cement a deal on Greece and doubtless there will be further market ructions".
In Europe, Greece's anti-austerity Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis have been touring European countries in a bid to ramp up support for a restructuring of the country's debt repayments.
Varoufakis is pushing the idea of debt swaps that would avoid the need for creditors to accept losses on the country's 315-billion-euro ($361-billion) foreign debt, while easing Athens' monthly financing burden.
While being given sympathetic ear so far the leadership's toughest test will come later this week when it must convince European paymaster Germany of its plans.
However, reassurances from the pair to creditors and allies that a default -- and possible Greek exit from the single currency area -- is not on the cards boosted investor spirits.
National Australia Bank's note also said that "general market sentiment has improved as oil holds on to a tidy supply-driven bounce".
On Tuesday, oil prices -- which had lost more than half their value since the summer -- surged to levels not seen since the start of the year thanks to news of a cut in the number of rigs drilling and energy giants slashing budgets.
The dollar was mostly lower against other Asia-Pacific currencies.
Australia's dollar, which plunged to a more-than five-year low 76.59 US cents Tuesday after an unexpected rate cut by the central bank, bounced back to 78.20 US cents.
The dollar fell to 61.63 Indian rupees from 61.71 rupees on Tuesday, to 12,596 Indonesian rupiah from 12,602 rupiah, to 1,087.31 South Korean won from 1,097.50 won, and to Tw$31.40 from Tw$31.53.
The greenback also slipped to 44.04 Philippine pesos from 44.09 pesos, and to Sg$1.3443 from Sg$1.3521, while edging up to 32.58 Thai baht from 32.53 baht.
The Chinese yuan firmed to 18.84 yen from 18.70 yen.
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