FOREX-Euro rises as Greece approves budget law; Japan GDP awaited

Mon Nov 12, 2012 5:11am IST

Polluted waters of China

Polluted waters of China

Growing cities, overuse of fertilizers, and factory wastewater have degraded China's water supplies to the extent that half the nation's rivers and lakes are severely polluted.  Slideshow 

* Euro's gains seen limited ahead of EU finance ministers' meeting

* U.S. "fiscal cliff" continues to weigh on greenback

* Japan GDP likely to show contraction

By Lisa Twaronite

TOKYO, Nov 12 (Reuters) - The euro held above a two-month low in early Asian trading on Monday after Greece's ruling coalition secured enough votes in parliament on Sunday to approve the 2013 budget law, but its gains were seen limited ahead of a meeting by euro zone finance ministers later in the session.

Deputies allied to Greece's three-party government approved the budget with a comfortable majority of parliament's 300 seats.

Euro zone finance ministers will meet in Brussels later in the session to discuss whether to release a new tranche of funding for the debt-plagued country. German Finance Minister Wolfgang Schaeuble told a German newspaper on Sunday that the troika of international lenders to Athens was unlikely to deliver its full report in time for Monday's meeting.

The euro was likely to remain under pressure as investors hedged some of the risks associated with the Nov. 16 Greece funding deadline, Richard Hastings, macro strategist at Global Hunter Securities, said in emailed comments.

"But we should emphasize that when it comes to distressed finance, deadlines are not as hard as they seem, and deals are surprisingly spontaneous at any moment," Hastings added.

The euro was changing hands at $1.2733, up about 0.2 percent from late North American levels on Friday, when it fell as low as $1.2690 on the EBS trading platform. That was its lowest since Sept. 7

Against the yen, it last stood at 101.16 yen, up 0.1 percent and moving away from a one-month low of 100.43 yen hit on Friday.

The dollar bought 79.45 yen, down slightly from late North American levels on Friday, when it fell as low as 79.07 yen, its lowest since Oct. 18.

The greenback sagged under concerns about the so-called fiscal cliff of about $600 billion in expiring tax cuts and spending reductions due to take effect in January, unless the government can reach a deal to curb the deficit.

U.S. President Barack Obama said on Friday he was prepared to compromise with Republicans to avert the fiscal cliff, but he insisted any plan include higher taxes for high earners. ID:nL1E8M93SW]

Investors awaited Japan's gross domestic product report for the July-September quarter, which is expected to show a drop 0f 0.9 percent from the previous quarter for a 3.4 percent annualised contraction.

Japan's Cabinet Office was scheduled to release the GDP report at 0850 JST (2350 GMT Sunday).

The Australian dollar was up about 0.1 percent at 1.0396 , but still well shy of Wednesday's 1 1/2-month high of $1.0480.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Top News

REUTERS SHOWCASE

Kerry's India Visit

Kerry's India Visit

Kerry presses India on WTO deal ahead of arrival  Full Article 

Big Infra Deal

Big Infra Deal

Piramal, Dutch APG tie up for $1 bln infra investment  Full Article 

E-Commerce

E-Commerce

Amazon says to invest $2 billion more in India   Full Article 

Lupin Results

Lupin Results

Q1 net profit up 56 percent on higher U.S. drug sales   Full Article 

Twitter Results

Twitter Results

Twitter assuages growth concerns for now as shares soar 35 percent  Full Article 

Auto Sector

Auto Sector

VW closes in on Toyota as global auto leader  Full Article 

Fed Meeting

Fed Meeting

Fed seen trimming bond buys, could offer vague rate clues  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage