The euro rose versus most of its major counterparts as
finance ministers from the currency union approved a bailout plan for Cyprus,
damping the risk of a default and a disorderly exit for the nation.
Euro-area finance ministers met in Brussels to consider the
deal between Cyprus and the so-called troika of international creditors.
“Assuming it is all signed off, markets aren’t likely to be
fussed about the details,” Sean Callow, a Sydney-based senior currency
strategist at Westpac Banking Corp. (WBC), said in reference to the deal. “Euro
should make a run at $1.31 in a relief rally.”
The 17-nation currency climbed 0.3 percent to $1.3024 as of
10:13 a.m. in Tokyo. It rose 0.7 percent to 123.61 yen. Japan’s currency lost
0.5 percent to 94.93 per dollar.
Cyprus Parliament Speaker Yiannakis Omirou told reporters
earlier in Nicosia that an agreement had been reached that would go to the euro
group for approval.
The tentative deal would spare Cyprus bank deposits of less
than 100,000 euros ($130,000) from a levy, and wind down Cyprus Popular Bank,
an unidentified European Union official said. The European Central Bank set a
deadline of today for a deal to be struck, threatening to cut off emergency
funding to Cypriot banks.
The euro sank 0.7 percent against the dollar last week, the
most since the period ended March 1, and tumbled 1.5 percent versus the yen as
Cyprus talks coincided with data signaling the trading bloc’s economy is
worsening.
(Source: Bloomberg)
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