Euro rangebound as markets awaits Greek results

TOKYO: The euro was rangebound in Asia on Friday as investors waited for the formal announcement on a Greek debt swap an
09 Mar, 2012

The euro bought $1.3268 and 108.46 yen in Tokyo morning trade, compared with $1.3274 and 108.28 yen late Thursday in New York, where the common currency jumped as Greece appeared to have clinched a debt swap with bond holders.

The dollar rose to 81.72 yen from 81.56 yen.

The euro was likely to remain in a tight band in Asia ahead of US jobs data although the results of the Greek debt swap participation from private-sector creditors could pose a risk of some fluctuation, said a senior dealer.

"Players are unlikely to tilt their positions greatly Friday ahead of the non-farm payrolls data," the dealer at a major European bank in Tokyo told Dow Jones Newswires.

While an official statement was due at 0600 GMT Friday, a Greek government source said that enough private creditors had agreed to the debt swap programme ahead of the Thursday deadline to allow it to go ahead.

The deal is crucial to Athens avoiding default and obtaining another 130-billion-euro bailout from the European Union and IMF.

Creditors' sign-up rate of above 90 percent in the swap deal would likely spark a further rally in risk assets, National Australia Bank said in a note.

"So additional support for investors' more buoyant risk appetite looks likely in the near-term," it said.

Copyright AFP (Agence France-Presse), 2012

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