EUR/USD Steady Around 1.14 on Hopes of Greek Deal

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.

Reuters

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