The euro held firm in early Asian trade on Wednesday, as investors stuck to hopes that Greece will find common ground with its euro zone partners and avoid a chaotic exit from the currency union. The euro traded at $1.1411 EUR=, turning positive on the week as it recovers from a low of $1.13195 hit on Monday.
Against the yen, it fetched 136.06 yen EURJPY=, compared with Tuesday’s low of 133.96 yen. Although Greece rejected a proposal to request a six-month extension of its international bailout on Monday, market players are betting that an agreement will be reached by the end of this week.
A source close to the government said Greece intends to ask on Wednesday for an extension of a loan agreement with the euro zone. The source drew a distinction between a loan agreement and the full bailout program, which Athens’ new government insists is dead.