The euro struck a 6 ½ month high versus a battling yen, and cut losses against the dollar as the politicians of the euro zone increased efforts to come to an agreement over assistance for Greece.
The yen dropped to a 7 ½ month low versus the dollar on assumption that the Bank of Japan (BOJ) would move under political stress to ease the already wobbly financial policy further and on poor export data. The yen has been losing ground versus the chief contenders for many weeks.
Finally, the euro traded at $1.2806, cutting a session low of $1.2736, with the stop-loss purchase orders cited in the range of $1.2720-30. It had fallen in advance after the international lenders of Greece failed to come to a deal on revealing emergency assistance.
The finance ministers of the euro zone, the European Central Bank (ECB), and the International Monetary Fund (IMF) finished twelve hours of discussions without accord on the subsequent tranche of mortgages to Athens as they bargained over ways to decrease the debt of the country to a sustainable level.
The single currency slashed losses after Angela Merkel (the German Chancellor) told that she observed chances of an agreement at the European finance ministers meeting on Monday.
Commerzbank’s head of FX research, Ulrich Leuchtmann told that everyone was looking at the possibility that a solution would be attained by Monday.
The single currency has been under stress from the latest economic data indicating that the euro zone is undergoing recession and from ambiguity over Spain.
On Wednesday, the Japanese currency extended losses to strike several month lows across the board after Liberal Democratic Party (LDP), the main opposition party tipped to succeed in a parliamentary election in the coming month, promised to thrust for further easing by BOJ.
The Japanese currency was also affected by data indicating the nation’s exports fell for the 5th consecutive month, fanning fears that the nation may be moving into recession.
The dollar increased 0.8% to 82.36 yen, highest after early April.
It was the 6th successive day of gains for the dollar against the yen and the players in the market cited more options barriers at 82.50 yen.
The euro busted over a crucial hurdle of 105.50 yen to strike a 6 ½ month high of 105.55 and went up 0.8% on the day.