Euro slips ahead of Greek debt talks

Tokyo

THE euro inched lower on Monday ahead of more talks aimed at solving Greece's debt crisis, as investors eye a slate of speeches by Federal Reserve officials for further clues about the timing of an interest rate hike.

The single currency eased to US$1.0813 and 129.69 yen on Monday from US$1.0821 and 129.98 yen in New York on Friday. The decline came before the leaders of Greece and economic powerhouse Germany met in Berlin on Monday to discuss Athens' debt woes and economic reforms necessary to unlock fresh bailout cash. Spain's economy minister Luis de Guindos turned the screw on Athens another notch on Sunday by insisting that it will not receive any money until it implements all its proposed reforms. German Chancellor Angela Merkel also insists that if Athens wants more bailout loans, of which Germany stumps up the biggest share, Greece must accept the bitter medicine of cuts and reforms.

In other Tokyo trading on Monday, the US dollar slipped to 119.91 yen from 120.11 yen in New York and well off the 120.71 yen in Tokyo earlier on Friday. "We are watching Fed officials this week," said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow. "The market is weighed down by the dollar's weakness and the currency is unlikely to trade actively ahead of their remarks," he wrote in a note to clients.

Fed vice chair Stanley Fischer was to speak on Monday with chair Janet Yellen due to give a lecture on Friday. Other officials scheduled to speak on Monday included Cleveland Fed president Loretta Mester, a non-voting member, and San Francisco Fed president John Williams, who does vote on policy. A dovish statement from the Fed last week sent the US dollar tumbling as it dampened expectations for an early summer interest rate rise.

The US dollar mostly weakened against other Asia-Pacific currencies, slipping to S$1.3764 from S$1.3878 on Friday, to NT$31.39 from NT$31.45, to 1,115.11 South Korean won from 1,122.50 won, and to 12,998.00 Indonesian rupiah from 13,115.00. The greenback also fell to 62.29 Indian rupees from 62.53 rupees, and to 32.54 Thai baht from 32.68 baht, while it was unchanged at 44.84 Philippine pesos. The Australian dollar jumped to 78.22 US cents from 76.82 cents, while the Chinese yuan fell to 19.32 yen from 19.51 yen. AFP