Euro Steady as Markets Weigh Cyprus Bailout Fears
TOKYO: The euro was steady in Asia Thursday as markets eye talks over a Cyprus bailout deal, while yen trade was dominated by speculation over the new Bank of Japan chief's first official press briefing.
The dollar fetched 95.94 yen in Tokyo midday trade, nearly flat against 95.98 yen in New York Wednesday afternoon, with the greenback held down after the US Federal Reserve stuck firmly to its monetary easing policies.
The euro strengthened at $1.2951 and 124.24 yen compared with $1.2937 and 124.17 yen in US trade.
Markets were keeping a close watch on Cyprus with talks continuing after lawmakers voted down a controversial plan to tax bank deposits as part of the debt-hit island's bailout package.
"The impression is that the worst-case scenario would be averted, although the whole problem also reminded us that the European debt crisis is far from being completely solved," said Daisaku Ueno, senior forex strategist at Mitsubishi UFJ Morgan Stanley.
National Australia Bank added that "fears of contagion have eased (for now)", supporting the euro after it took a drubbing on news of the bailout deal's terms.
Cypriot leaders are to decide Thursday on a newly drawn up plan aimed at securing a rescue package for the near-bankrupt eurozone member, after parliament rejected the controversial tax on savings.
Business News
AFP
