Forex - USD/JPY higher after Greek bailout deal

Published 02/21/2012, 03:25 AM
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Investing.com - The U.S. dollar was up against the yen on Tuesday, hovering close to a multi-month high after euro zone ministers agreed on a bailout for Greece although uncertainty over the country’s ability to honor the deal remained.

USD/JPY hit 79.85 during early European trade, the daily high; the pair subsequently consolidated at 79.79, advancing 0.21%.

The pair was likely to find support at 79.35, Monday’s low and resistance at 80.23, the high of August 4.

Euro zone finance ministers agreed earlier on a EUR130 billion deal slated to reduce Greece's debt to 120.5% of gross domestic product by 2020 and shield the country from a default.

Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.

However, investors remained cautious amid uncertainty over Greece’s ability to meet the terms of the deal and pay off even its reduced debt burden.

The yen also fell to a three-month low against the euro earlier with EUR/JPY adding 0.28%, to hit 105.73.

Meanwhile, European Union finance ministers were scheduled to meet throughout the day.


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