WORLD FOREX: Euro Falls, No Imminent End Seen To Debt Problems

Wednesday, Sep 14, 2011

-- Traders focus on talks between Greece, Germany and France

-- Investors doubt talks will bear fruit

-- Dollar may rise vs yen as firm U.S. data expected


 
   By Takashi Mochizuki 
   Of DOW JONES NEWSWIRES

TOKYO (Dow Jones)--The euro fell against the dollar and yen in Asia on Wednesday due to pessimism that a conference between Germany, France and Greece later in the day will ease concerns over sovereign debt problems.

Media reports cited unnamed government officials as saying Greek Prime Minister George Papandreou will hold a teleconference with German Chancellor Angela Merkel and French President Nicolas Sarkozy on Greece's debt crisis.

But Tokyo dealers kept selling the euro in the belief the leaders' efforts won't bear fruit anytime soon.

"It's impossible to anticipate that we will have something that can solve all the debt problems at once," said Shuichi Kanehira, a senior dealer at Mizuho Corporate Bank.

As of 0410 GMT, the euro was at $1.3630 and Y104.86 from $1.3678 and Y105.20 on New York Tuesday.

High-yielding units other than the euro were also weaker due to investors diminished risk appetite. The New Zealand dollar was Y62.82 from Y63.31 and $0.8158 from $0.8229. The Australian dollar was at Y78.63 from Y79.35 and $1.0217 from $1.0312.

The dollar was unchanged at Y76.93. Dealers said the dollar may rise gradually against the yen. One reason for this is increasing demand for the dollar as a safe-haven amid the ongoing European debt crisis. Another is U.S. economic indicators due later in the day that may be stronger than expected.

The U.S. will release advance monthly sales for retail at 1230 GMT. Barclays Capital chief Japan strategist Masafumi Yamamoto expects the outcome to be stronger than the market's expectation.

A Dow Jones poll of economists forecast the data for August may show a 0.3% rise after a 0.5% gain in the previous reporting month.

The ICE Dollar Index, which tracks the U.S. dollar against a basket of currencies, was at 77.297 from 77.067.


 
Interbank Foreign Exchange Rates At 23:50 EDT / 0350 GMT 
 
                         Latest     Previous   %Chg   Daily   Daily    %Chg 
                                    2150 GMT          High    Low      12/31 
Dollar Rates 
 
USD/JPY Japan            76.94-96       76.93-07  -0.02    77.06    76.88  -5.14 
EUR/USD Euro            1.3628-32      1.3677-80  -0.36   1.3705   1.3624  +1.78 
GBP/USD U.K.            1.5756-60      1.5776-81  -0.13   1.5800   1.5756  +0.96 
USD/CHF Switzerland     0.8830-34      0.8800-05  +0.33   0.8835   0.8792  -5.54 
USD/CAD Canada          0.9901-06      0.9859-64  +0.43   0.9908   0.9848  -0.44 
AUD/USD Australia       1.0228-32      1.0309-15  -0.80   1.0370   1.0216  -0.04 
NZD/USD New Zealand     0.8169-74      0.8228-34  -0.72   0.8265   0.8170  +4.81 
 
Euro Rate 
 
EUR/JPY Japan           104.87-90      105.19-50  -0.44   105.40   104.86  -3.45