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Summary The euro was also supported by a possible boost in resources for the International Monetary Fund.
The euro held steady against the dollar and yen in Asia on Friday after rising in New York on hopes for progress in the European debt crisis.The single currency bought $1.2962 and 99.91 yen in Tokyo afternoon trade, compared with $1.2961 and 99.97 late Thursday in New York, where the it had risen on successful debt auctions by France and Spain.Sentiment towards the euro was boosted as the auctions were the first by either country since Standard & Poors downgraded their sovereign ratings last Friday.The dollar was at 77.09 yen compared with 77.15 yen in New York.The euro was also supported by a possible boost in resources for the International Monetary Fund (IMF) and hopes that Greece will strike a deal with its creditors on restructuring its debts.There is some selling (of the euro for the yen) from Japanese exporters, but the buying stemming from speculators unwinding their positions is much larger, a dealer at a major Japanese bank told Dow Jones Newswires.The IMF said Wednesday it needed up to $500 billion more to pad its war chest as the European debt crisis increasingly threatens the global economy.China is likely to contribute funds, but the question will be how much conditionality there is likely to be, National Australia Bank said in a note.It will be market positive if the full amount can be locked in. If the US or UK are not willing or able to contribute, then they may have to accept Chinas conditions, it said.The United States, the IMFs biggest stakeholder, has so far ruled out writing any more cheques.Tokyo has not made a definite pledge but a finance ministry official told AFP Thursday: Japan will consider making contributions if necessary.The dollar was mostly lower against other Asian currencies.The greenback fell to 31.53 Thai baht from 31.72 on Thursday, to Sg$1.2727 from Sg$1.2777, to 43.28 Philippine pesos from 43.31 pesos and to 1,135.00 South Korean won from 1,141.40.It also fell to 8,980.00 Indonesian rupiah from 9,067.00 while firming to Tw$29.96 from Tw$29.91.
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