The Euro has been holding firm well in to the Asian trading session, hanging on to the previous session’s gains. Both stable commodity prices and news of a possible aid package for Greece (again) helped subside Euro sell offs.
After hitting a three-week low of 1.4253 at the beginning of this week, EURUSD has edged up to 1.4415.
“The Euro will probably be capped around $1.45 unless there are renewed expectations of rate hikes by the European Central Bank. But at the same time it may become hard to sell the euro just based on this factor alone,” said Minori Uchida, a senior currency analyst at the Bank of Tokyo-Mitsubishi UFJ.
EURJPY also rose to around 116.88 yen, up from a six-week low of 114.78 yen reached in early European trading on Tuesday.
The single currency got a boost after a Dow Jones news agency report on Tuesday reported that a senior Greek government official said that Greece expects to receive a new aid package totalling nearly 60 billion euros ($87 billion)as soon as next month.
Although the Greek government denied the report, some investors think it is a likely scenario given fears that other options, such as debt restructuring or letting Greece default, could cause more losses among European banks.