U.S. Dollar / Japanese Yen 81.21-26 81.37-80.69 +0.35%
EUR / USD 1.4379-80 1.4406-1.4282 +0.70%
Australian dollar / US dollar 1.0710-13 1.0756-1.0683 +0.27%
British pound / dollar 1.6540-45 1.6546-1.6471 +0.46%
Dollar / Swiss Franc 0.8503-10 0.8524-0.8463 -0.25%
/ Quotations are given at 04.50 am GMT /
May 31. / Dow Jones /. Euros in the Asian session on Tuesday rose to nearly three-week high against U.S. dollar amid falling fears about debt problems in Greece. Meanwhile, the yen fell against all major currencies after ratings agency Moody's Investors Service has begun to explore Japan's debt rating for possible downgrade.
According to the newspaper The Wall Street Journal, Germany intends to discontinue its efforts to support the postponement of the maturity of Greek bonds, to promote a new package of credit assistance to that country. According to traders, it could be a step that will help overcome the indifference of Europe to the financial needs of Greece.
"These messages are triggered buying euros - said Yuji Saito, director of Credit Agricole exchange market in Tokyo. "Nevertheless, real growth in the euro is associated with a change in the balance of world index MSCI", at the end of the month, he said. Euro and Swiss franc will benefit from this change in the balance, while the British pound came under pressure, said Saito.
Nevertheless, the British pound rose against the dollar.
"While it remains unclear whether Greece, eventually recover without restructuring the debt, even if now slightly decreased concerns about emergency debt restructuring," - says Daisuke Ueno, a senior analyst Gaitame.Com Research Institute.
According to the official representative of the European Union, made on Monday, the EU can exert pressure on the Greek banks are major creditors of the government that they have agreed to defer repayment of loans and gave Athens more time to reform and reduce the growing debt burden.
"They make sense to do this step in order to achieve sustainability in their own country," - spokesman. According to estimates released last month by the International Monetary Fund, the share of domestic credit institutions account for 38% of the debt of Greece.
Meanwhile, the Greek government intensifies preparations for the reduction of new spending and raise taxes in the amount of billions of euros, which it publishes in the next few days, even amid the continuing rise of broad opposition in the country, these new measures.
This week, Prime Minister Papandreou will hold a series of meetings with cabinet members and deputies from the Socialist Party in order to detail the new measures, as well as to prevent the growing discontent of ordinary members of the ruling party.
Agency Moody's Investors Service announced that has begun to explore the rating of sovereign debt for possible downgrade on the background of continuing difficulties, the government, which faces political deadlock on the issue related to fiscal consolidation and the way in which to finance recovery from the disaster in 1911 March. Japanese Finance Minister refused to comment on the decisions of private rating companies.
There is uncertainty about how the government intends to propose a supplementary budget, as well as clear the way will be financed by funds for restoration after the earthquake / "- said Takako Masai, general manager of market subgroups Shinsei Bank." Policy in Japan may become a factor selling the yen, "in the coming weeks. However, given the uncertainty about the U.S. economic recovery and the debt problems of Greece, the weakness of the yen may be short," she said.
