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Forex - Yen hits 1-month lows on Greece debt deal hopes

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Investing.com -

Investing.com - The yen fell to one-month lows against the dollar on Tuesday as market sentiment was boosted by hopes that Greece and its creditors are moving towards a compromise deal to extend its bailout program.

USD/JPY was up 0.40% to 119.11, the highest level since January 9.

Investor confidence was boosted by reports that the European Commission will propose a six-month extension to Greece's existing bailout program at an emergency meeting of the euro group of finance ministers, due to take place on Wednesday.

Athens is expected to ask for a bridge loan to cover its funding needs until September, and to also propose new economic reforms to replace some of the harshest austerity conditions attached to its bailout.

Greek Prime Minister Alexis Tsipras has said he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension, fuelling fears over Greece's future in the euro zone.

The yen was lower against the euro, with EUR/JPY advancing 0.43% to 134.94, while EUR/USD slipped 0.18% to 1.1305.

Demand for the dollar continued to be underpinned after last Friday's robust U.S. jobs report underlined expectations for a mid-year rate hike by the Federal Reserve.

In the U.S., data on Tuesday showed that jobs openings rose to more than 5 million in December, up 181,000 from November. It was the highest level since January 2001, indicating that the recovery in the labor market is gaining momentum.

In other trade, the U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.18% to 94.87.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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