• Euro steady ahead of Europe summit on Greece

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    TOKYO: The euro held steady on Tuesday as European leaders prepare for a summit after Greece at the weekend voted against accepting more austerity measures, pushing the country closer to a eurozone exit.

    In Tokyo afternoon trading, the common currency edged down to $1.1031 and 135.30 yen from 1.1057 and 135.50 yen in New York late Monday.

    The dollar ticked up to 122.66 yen from 122.55 yen in US trade.

    “The worst-case scenario, notably Grexit, has not hurt the euro much for now, while the best-case scenarios, including a negotiated settlement, are not a great reason to buy the euro either,” Alan Ruskin, a forex analyst at Deutsche Bank, told Bloomberg News.

    Following the Sunday vote, the euro dropped to $1.0963 in New York electronic trade, before gaining ground in Asia on Monday.

    The rally was partly driven by news that Finance Minister Yanis Varoufakis was quitting, just hours after the referendum came back with a “no” to creditors’ bailout reform proposals.

    The government quickly replaced him with Euclid Tsakalotos, an economist who had been the pointman in negotiations with creditors since April and is seen as far less abrasive than Varoufakis.

    Greek Prime Minister Alexis Tsipras will unveil new proposals Tuesday at a hastily arranged emergency eurozone summit in Brussels.

    With the economy on the brink, the government has extended an eight-day bank closure until Thursday on fears cash machines will run dry.

    AFP

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