The euro held steady against major currencies in Asian trade Tuesday as investors were lifted by reports that officials were close to approving austerity measures key to Greece avoiding a debt default.
The single currency was flat at $1.4277 in Tokyo afternoon trade from New York late Monday. It eased slightly to 115.32 yen from 115.51.
The dollar eased to 80.78 yen from 80.90 yen.
On Monday Greek prime minister George Papandreou begged parliament in Athens to pass drastic austerity measures and keep the country 'on its feet'.
Dealers in Tokyo said investors are cautiously watching Wednesday's vote, which must be passed for Athens to receive the next 12 billion euro tranche of a bailout package from the European Union and IMF and pay its debts next month.
'Positive news regarding Greece overnight and a rebound in the stock market is making it tough to sell the euro against the dollar,' said Kuniyuki Hirai, manager at the foreign exchange trading department of Bank of Tokyo-Mitsubishi UFJ.
However, he cautioned: 'Many people in the market probably think the vote will pass, although uncertainty remains. But even after Greece approves the bill, it isn't certain whether the euro will show a strong rally,' he said.
Source : New Age
