Euro ticks up on cautious hope despite more concerns about Greece’s finances


AFP

TOKYO–The euro rose Wednesday amid cautious hopes for the eurozone economy, even as Greece admitted that it raided an emergency account to pay off an IMF loan, aggravating concerns about Athens’ debts. In Tokyo, the European single currency strengthened to US$1.1247 and 134.81 yen from US$1.1213 and 134.44 yen in New York. The dollar fetched 119.83 yen, down from 119.90 yen in New York late Tuesday and 120.25 yen in Tokyo earlier Tuesday. An improving eurozone inflation picture suggested the European Central Bank may wrap up a quantitative easing scheme sooner than expected, lending support to the currency, said Yuji Saito, executive director of foreign exchange at Credit Agricole in Tokyo.

A European Union forecast last week said the bloc was likely to escape deflation this year. ��The euro got a boost after German bond yields rose,�� Saito said, adding that the relatively upbeat inflation picture could mean an earlier-than-expected exit from the ECB’s monetary easing scheme. The single currency also benefited from investment funds settling accounts, he said. The dollar was mixed against other Asia-Pacific currencies. It dropped to SG$1.3349 from SG$1.3388 on Tuesday, to 33.69 Thai baht from 33.78 baht, and to 44.73 Philippine pesos from 44.86 pesos. It also fell to 13,164.00 Indonesian rupiah from 13,203.00 rupiah. The dollar rose to 1,099.71 South Korean won from 1,095.98 won while staying unchanged at 64.15 Indian rupees. The Australian dollar firmed to 79.82 U.S. cents from 79.36 cents while the Chinese yuan edged down to 19.32 yen from 19.36 yen.