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[TOKYO] The euro rose against other major currencies on Monday as new reform proposals by Greece fuelled optimism that Athens may be able to clinch a bailout deal with its creditors and avoid defaulting on a debt repayment.
The single currency climbed to US$1.1381 and 139.70 yen in Tokyo from US$1.1349 and 139.23 yen in New York late Friday. The dollar fetched 122.72 yen against 122.69 yen in US trade.
Eurozone leaders were set to hold an emergency meeting later Monday on the five-month-old crisis.
Athens put forward new proposals to its creditors ahead of the crunch summit, offering a ray of hope that a deal to end the country's debt crisis can be struck after five months of deadlock.
"It is difficult to forecast how the summit will turn out but it seems there is no small deal of optimism in markets that they will come to an agreement in the end," said Shinya Harui, a Europe-focussed financial markets analyst at Nomura Securities in Tokyo.
It is not clear what concessions have been offered by either side, but Greek premier Alexis Tsipras detailed what his office called a "mutually beneficial deal" in a phone call with German Chancellor Angela Merkel, French President Francois Hollande and European Commission President Jean-Claude Juncker.
Pressure is mounting to prevent Greece from defaulting on its debt, with a June 30 payment deadline approaching.
Harui said the euro would drop only temporarily even if Greece defaults and drops out of the common currency.
"The euro would likely fall because of uncertainty over what would happen next," he said."But I believe the unit would later bounce back as a Greek exit would mean the euro is minus a negative factor.
"Given safety nets prepared by the (European Central Bank), it would not affect Italy, Spain or other southern European nations," he said.