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euroTOKYO: The euro moved narrowly against the dollar and yen in Asia on Tuesday as investors watched deadlocked talks on Greek debt.

 

The euro bought $1.3111 and 100.57 yen in Tokyo midday trade, compared with $1.3129 and 100.49 yen in New York late Monday.

The euro is likely to fluctuate against the dollar and yen as short-term investors turn their attention back to Greece-related headlines, said a senior dealer at a major bank in Tokyo.

"Greece may already be heading to a hard-landing scenario," he said.

For now their focus is on whether Athens will face strikes.

Greek trade union leaders called a general strike on Tuesday, as embattled Greek Prime Minister Lucas Papademos faced growing pressure from EU leaders to adopt tough new austerity measures to unlock another batch of aid.

A key meeting with heads of the Greek socialist, conservative and far-right parties that form Papademos' unwieldy coalition was also expected to take place Tuesday, after talks failed to materialise on Monday.

The dollar inched up to 76.75 yen from 76.54 yen in New York late Monday after Japan said it was prepared to step into currency markets again.

Japan Tuesday confirmed it had carried out "stealth" intervention following a single day yen sell-off of more than $100 billion in October.

Japan sold a total of 1.02 trillion yen ($14 billion at Tuesday's rate) worth of its currency over the first four days of November, data from the finance ministry showed Tuesday.

The move followed the 8.07-trillion-yen operation on October 31, the biggest-ever for a single day, after the yen reached a postwar high of 75.32 to the dollar, hitting exporters hard.

Finance Minister Jun Azumi declined to comment on the November action but said everything remained on the table.

"I will not rule out any options, and I've been telling you that I will act when necessary," Azumi said at a regular news conference.

 

Copyright AFP (Agence France-Presse), 2012

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