By: DailyForex.com
The Euro was on the defensive during the Asian trading session as persistent worries over Spain’s bailout needs kept the pressure on the common currency. Investors had been hopeful that Spain would make an official request sooner rather than later which would help to restore confidence in the E.U.’s 4th largest economy, but E.U. policy makers said yesterday that the country’ wasn’t yet in need of the bailout. According to the statement, E.U. finance ministers found that the Spanish government was still in the process of overhauling its own economy and able to find it own funding, thus did not yet need financial aid.
As reported at 1:02 p.m. (JST) in Tokyo, the EUR/USD pair was trading at $1.2971, slightly improved from late N.Y. trading but well off the 2-week peak of $1.3072 struck last Friday. The safe haven Yen was also off its recent 2-week high, with the EUR/JPY pair trading at 102.80 Yen.
In Greece, negotiations have reached a stalemate as to how to move the bailout program forward, and Greek officials have reported that their international lenders are still considering the Greek government’s request for a 2-year extension to reach its deficit reduction targets.