Summary In Tokyo trading, the common currency bought $1.1403 and 135.77 yen, down from $1.1413.
TOKYO (AFP) - The euro held steady on Wednesday as investors hope last-ditch talks on Greece s debt will see a breakthrough deal that avoids the country exiting the eurozone.
In Tokyo trading, the common currency bought $1.1403 and 135.77 yen, down from $1.1413 and 136.13 yen in New York but well above $1.1357 and 134.70 yen in Tokyo earlier Tuesday.
The dollar slipped to 119.07 yen from 119.29 yen, but it was also up from 118.55 yen in Tokyo on Tuesday. The yen strengthened slightly Wednesday after the Bank of Japan held off launching further easing measures following a two-day policy meeting.
"Right now, it s all about Greece," said Kazuo Shirai, a trader at MUFG Union Bank.
"The euro was bought amid speculation there s still scope for further talks."
Greek public television said Tuesday that the country s new government will apply for further aid from its European partners, although will not sign up to the painful austerity measures imposed on the country.
The news will come as a relief after two eurozone finance ministers meetings in the past week both collapsed without agreement as Athens refused to continue with the bailout that imposed swingeing spending cuts and tax hikes.
The apparent U-turn also comes days before Athens financial lifeline package expires, which would leave it unable to pay its bills, leading to default and the Greece almost certainly leaving the eurozone.
"There s a bit more hope for progress in resolving the Greek problem, which is fueling risk sentiment and weakening the yen," Yuji Kameoka, chief foreign-exchange strategist in Tokyo at Daiwa Securities, told Bloomberg News.
"If we get word of concrete headway being made in the negotiations, it s very possible the yen will weaken beyond 120 per dollar."
On Wednesday, Bank of Japan policymakers said the country s economy was seeing a "moderate recovery trend", but they further cut back on their inflation expectations, in a sign that its price targets look increasingly out of reach.
The central bank s decision to keep its already massive stimulus unchanged was widely expected, but analysts have said that weak economic growth figures may force its hand later this year.
On Monday, official data showed the economy limped out of recession in the last quarter of 2014, with a weaker-than-expected 0.6 percent expansion between October and December.
