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Forex - Euro weaker in Asia as Greece meetings ahead, RBA rates due

Published 07/06/2015, 08:37 PM
Updated 07/06/2015, 08:39 PM
© Reuters.  Euro down as Greece meeting ahead
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Investing.com - The euro held weaker in Asia on Tuesday as Greece received hard news on IMF funding possibilities and investors focused on a regional rate decision by Australia's central bank.

EUR/USD traded at 0.07% to 1.1048 in Asia while USD/JPY changed hands at 122.75, down 0.15%.

Earlier, Greek Prime Minister Alexis Tsipras received hard news from International Monetary Fund Managing Director Christine Lagarde on Monday that policy prohibits lending to countries that have missed payments, although it can offer advice of the staff, an IMF spokesman said.

Lagarde spoke to Tsipras by telephone and did say that technical talks could be held with staff

"The Managing Director explained the Fund's inability to disburse under its arrears policy, but offered to provide technical assistance where requested by the Greek authorities," the IMF spokesman said.

Greece missed payments to the IMF on June 30.

As well, U.S. President Barack Obama and Treasury Secretary Jack Lew each spoke to key officials in Europe Monday.

Lew told Tsipras and newly-installed Finance Minister Euclid Tsakalotos that it was important to work "toward a constructive outcome that will allow Greece to make difficult but necessary fiscal and structural reforms, return to growth, and achieve debt sustainability within the euro zone," the Treasury said.

Ahead, the Reserve Bank of Australia policy meeting and cash rate decision is at 1430 (0430 GMT) with a steady stance seen at a record low 2.0%.

Earlier. the Australia AI/HIA June construction index fell 1.4 points to 46.4.

AUD/USD tarded at 0.7486, down 0.18%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% at 96.53.

Overnight, the dollar trimmed gains against a basket of other major currencies on Monday, after data showed that U.S. service sector activity grew at a slower pace than expected in June although the greenback remained broadly supported by the outcome of Sunday's Greek referendum.

The Institute of Supply Management reported on Monday that its non-manufacturing purchasing manager's index inched up to 56.0 last month, up from 55.7 in May but below forecasts for a reading of 56.2.

European officials have indicated that they will only continue to finance Greece in return for far-reaching economic reforms.

Tsipras welcomed the outcome of the vote and said Athens was returning to negotiations with the express goal of reopening banks, which have been shut for over a week after capital controls were imposed.

Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days.

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