Euro Suffers a Setback on Renewed Investor Concerns

By: Barbara Zigah

With investor worries about the Greek debt problem reignited, the Japanese Yen rose versus the single currency Euro in Asian trading today. Yesterday, the Euro enjoyed broad gains following this weekend’s announcement of a Greek rescue plan by the E.U., however new worries are circulating as to how the Greek government will put those bailout funds to use. Resultantly, the common currency slipped versus the Japanese Yen to 125.84 Yen, a decline of .7% and reversing all gains from yesterday. Market players will be keenly watching the Treasury auction in Greece to be held later today to gauge whether or not risk appetite for Greek debt has increased; according to a currency manager in Japan, the auction will be seen as Greek’s first litmus test following the rescue plan news.

The U.S. Dollar also fell versus the Japanese Yen, dropping to the lowest level in 2-weeks. As reported at 1:54 p.m. (JST) in Tokyo, the U.S. Dollar slipped to 92.65 Yen, a loss of .6%; earlier in the session it had traded as low as 92.57 Yen. Market players attribute the Dollar’s decline to poorer Treasury yields, as well as a drop in equity markets prior to the release of earnings reports from U.S. computer chip manufacturer, Intel.