In early European deals on Tuesday, the US dollar and the Japanese yen extended their Asian session’s uptrend against other major currencies as lingering uncertainties over Greece prompted investors to seek the safe-haven currencies.
Market News International reported, citing senior government officials in Athens it didn’t identify, that the Greek government wants to amend the accord for financial aid reached at an European Union summit held last month.
Traders moved toward safe-haven currencies on fears that such a move may complicate Greece’s efforts to return to fiscal health.
Also hurting investors sentiment was a report in the Tuesday edition of the Financial Times that Greece aims to raise $5 billion-$10 billion in a debt sale in the United States later this month. The report added to investor concerns that Greece won’t be able to sell its bonds sufficiently at home.
At 3:15 am ET Tuesday, the dollar rose to a 6-day high of 1.5171 against the pound and 1.3407 against the euro, compared to yesterday’s close of 1.5297 and 1.3487, respectively. If the dollar climbs further, it may target 1.487 against the pound and 1.339 against the euro. At present, the dollar is worth 1.5180 against the pound and 1.3420 against the euro.
The dollar that closed yesterday’s trading at 1.0622 against the Swiss franc jumped to a 6-day high of 1.0687 at 3:10 am ET Tuesday. The next upside target level for the dollar is seen at 1.075. The dollar-franc pair is currently worth 1.0675.
Swiss consumer price inflation rose to 1.4% on an annual basis in March, the Federal Statistical Office reported today. Following an annual growth of 0.9% in consumer prices in February, economists were expecting inflation to rise to 1.5%.
On a monthly basis, consumer prices edged up 0.1% in March, slightly slower than the consensus forecast of 0.2%.
The yen edged up against the currencies of US and Europe in early deals on Tuesday. Currently, the yen is trading at a 4-day high of 93.80 against the dollar and a 6-day high of 125.87 against the euro, compared to Monday’s closing values of 94.38 and 127.29, respectively. If the yen advances further, it may likely target 93.0 against the US dollar and 121.5 against the euro.
The yen is currently trading at a 5-day high of 142.50 against the pound with 141.0 seen as the next upside target level. At yesterday’s close, the pound-yen pair was quoted at 144.38.
Against the Swiss franc, the Japanese yen is presently trading at a 6-day high of 87.87. The next upside target level for the yen is seen at 87.0. The franc-yen pair closed yesterday’s trading at 88.90.
Looking ahead, the U.K. construction PMI for March, Bank of England’s housing equity withdrawl report for the fourth quarter and the Euro-zone sentix investor confidence report for April have been slated for release at 4:30 am ET
The U.S. Federal Reserve is scheduled to release the minutes of its March 16th meeting at 2 pm ET.