Euro pushes up after Greece agreement

HONG KONG: The euro pushed higher yesterday after Greece’s promise to provide new plans to reform its bailout, while Shanghai stocks continued their latest rally towards a sevenyear high.

Traders moved into the single currency after Greece’s deal with its key European partners, who agreed to finish work “as fast as possible” on completing its EU-IMF rescue programme.

But while the dollar’s rally against the euro and yen fizzled out, analysts said they expect the currency to resume its advance as the US Federal Reserve prepares for a rate hike while the Japanese and European central banks print more cash.

In equities trade, Tokyo swung from initial losses to end 0.43% higher, adding 83.66 points to 19,560.22, while Sydney added 0.40%, or 24.7 points, to close at 5,975.5.

Seoul was flat by the close, edging down 0.65 points to 2,037.24, and Hong Kong lost 0.38%, or 93.65 points to 24,375.24.

Shanghai rallied 0.98%, or 35.05 points, to 3,617.32. The market has climbed more than nine percent following an eight-session winning streak and is now at its highest level since mid-2008.

Investors welcomed news that Greek Prime Minister Alexis Tsipras had agreed to hand over a fresh package of reforms to its paymasters as his anti-austerity government tries to overhaul the terms of its bailout.

In afternoon Asian trade, the euro bought $1.0680 and 129.02 yen against $1.0660 and 128.77 yen in New York Thursday.

The dollar was at 120.73 yen, compared with 120.80 yen in US trade.

The greenback has been on a rollercoaster ride this week after sinking in reaction to the Federal Reserve’s lowered expectations for interest rates and economic growth.

That cooled talk of a rate rise in early summer, sending the dollar tumbling and stocks rising. At one point in New York Wednesday, after the announcement, it fell to 119.57 yen while the euro was at $1.1010.

The US currency has since recovered, notching up gains over the past two days.

On Thursday the Dow eased 0.65% and the S&P 500 shed 0.49%, but the Nasdaq added 0.19%.

Oil prices fell further owing to lingering concerns about a global supply glut. US benchmark West Texas Intermediate for April delivery fell 47 cents to $43.49 and Brent crude for May slipped 23 cents to $54.20 in afternoon trade.

Gold fetched $1,169.94 against $1,164.38 late Thursday.