Euro steady after ECB, Greek debt meetings
AFP
AFP, TOKYO: The euro held its gains yesterday, bolstered by the European Central Banks upbeat inflation forecasts and hopes for a last-minute Greek bailout deal.
In Tokyo afternoon trading, the common currency bought $1.1267 and 140.10 yen, against $1.1270 and 140.01 yen in US trade.
Upbeat US figures and a positive Federal Reserve report on the state of the worlds top economy boosted the dollar, which fetched 124.43 yen, against 124.23 yen in New York.
After a policy meeting Wednesday, the European Central Bank kept its key interest rates unchanged at record lows and its president Mario Draghi said it would maintain its bond-buying stimulus programme, putting an end to talk it could be wound down early.
The ECB also projected eurozone inflation would reach 0.3 percent in 2015, up from its previous forecast of flat prices, while it kept its 2016 forecast at 1.5 percent and its 2017 forecast at 1.8 percent.
Adding to upbeat sentiment were hopes of a possible deal in Greeces bailout talks with its creditors ahead of a Friday deadline for it to repay some of its debt.
While a meeting between Greek Prime Minister Alexis Tsipras and European Commission chief Jean-Claude Juncker ended late Wednesday without a breakthrough, they agreed to continue discussions that would unlock billions in much-needed cash for Greece.
Eurogroup chief Jeroen Dijsselbloem, who also attended the four-hour talks, told reporters it was a very good meeting. It would be quite a surprise if they didnt reach an agreement on Greece, Keith Poore, head of investment strategy at AMP Capital Investors in Wellington, told Bloomberg News.
US data showed solid growth in private-sector job hiring and a healthy outlook on the economy in the Feds latest update.
And in its closely watched Beige Book, the US central bank said the economy returned to modest-to-moderate growth in April and May after stalling in the first three months of the year, partly because of severe winter weather.
The dollar mostly stronger against other Asia-Pacific currencies.
It rose to Tw$30.88 from Tw$30.79 on Wednesday, to 1,112.13 South Korean won from 1,104.80 won, and to 33.75 Thai baht from 33.64 baht.
The greenback also firmed to 13,248 Indonesian rupiah from 13,204 rupiah, to 44.86 Philippine pesos from 44.63 pesos, to 64.17 Indian rupees from 63.79 rupees, and to Sg$1.3468 from Sg$1.3461.
The Australian dollar weakened to 77.25 US cents from 77.97 cents while the Chinese yuan bought 20.02 yen against 19.96 yen.
