FOREX-Yen eases as risk-taking resumes; euro down

* Euro pressured on concerns about Greek aid

* Euro down 0.2 pct at $1.3456 (EUR=: )

* Yen slips as risk sentiment resumes

* Aussie up after upbeat RBA minutes

By Tamawa Desai

LONDON, April 20 (BestGrowthStock) – The yen slipped broadly on
Tuesday as a sell-off in growth-linked currencies waned and the
euro was pressured on concerns about Greece.

The euro fell (Read more about the trembling euro. ) after European Central Bank Governing Council
member Axel Weber said Greece may require assistance of up to 80
billion euros ($111.8 billion) to avoid default, according to a
report in the Wall Street Journal on Tuesday. [ID:nLDE63J05P]

That amount would be far larger than the 30 billion euro aid
mechanism agreed by euro zone finance ministers earlier this
month, raising concerns about Greece’s ability to tackle its
massive debt.

“No one believe that initial amount would be enough to cover
Greece’s funding needs,” said Lee Hardman, currency economist at
Bank of Tokyo-Mitsubishi UFJ.

“The short-term liquidity risk may be reduced, but that
doesn’t resolve the issue of debt sustainability. It’s difficult
to see a way out for Greece.”

The market will be closely watching Greece test appetite for
its debt later on Tuesday when it comes to the market with a 1.5
billion euro sale of 13-week T-bills.

By 0839 GMT, the euro was down 0.2 percent on the day at
$1.3456 (EUR=: ).

Delays to talks between Greece, European and International
Monetary Fund officials over the possible implementation of an
aid package for the country weighed on the single currency on


The dollar index (Read more about the global trade. ), a gauge of the greenback’s value against a
basket of currencies (.DXY: ), was flat at 81.03 after pulling
back from a high of 81.28. It had gained broadly on Monday after
the Goldman news sparked a bout of risk aversion.

The dollar recovered after hitting a one-month low against
the yen on Monday as investor appetite for riskier assets was
supported by some positive U.S. earnings reports, which helped
Wall Street shares rise and countered fears about a broader
regulatory impact from the fraud case brought against Goldman
Sachs (GS.N: ).

The dollar rose 0.3 percent from late New York trade to
92.64 yen (JPY=: ), having hit a low of 91.58 yen on Monday.

“Conditions are mainly supportive for risk assets,” said
BTM-UFJ’s Hardman.

The yen remained under pressure on the crosses, particularly
against the Australian dollar which gained broadly after minutes
of the Reserve Bank of Australia’s (RBA) April policy meeting
showed it felt it was not prudent to delay a hike given an
expected boom in the country’s terms of trade. [ID:nSYC002324]

The Aussie rose 0.3 percent to $0.9283 (AUD=D4: ), testing
resistance from moving averages on the hourly chart at that
level, while the kiwi fell 0.5 percent to $0.7102 (NZD=D4: ) after
the inflation data. [ID:nSGE63I00O]

Sweden’s central bank left interest rates unchanged as
expected, and repeated it would begin tightening policy in
summer or early autumn. [ID:nSAC016657] The Swedish crown
initially dipped against the euro (EURSEK=D4: ) after the

The Bank of Canada is expected to keep rates steady later in
the day, but market participants expect a hawkish tilt to its
assessment given the strength of its economy.

“We will be looking for any language shifts in the
accompanying statement that could potentially benefit the
Canadian dollar,” UBS analysts said in a note.
(Additional reporting by Satomi Noguchi in Tokyo; Editing by
Susan Fenton)

FOREX-Yen eases as risk-taking resumes; euro down