LONDON: The euro weakened for a third day against the dollar as talks between Greece and its creditors in the region ended without an agreement.
The common currency dropped to a one-week low versus the yen on Monday after Greece’s newly elected government said it couldn’t accept proposals for it to stick to the terms of the current bailout agreement. The Bank of Japan begins a two-day policy meeting Tuesday. The Aussie erased losses after minutes of this month’s Reserve Bank of Australia meeting suggested another interest-rate cut isn’t imminent.
“Greece and Germany came to the talks with different preconditions, and the lack of compromise is weighing on the euro,” said Yuji Saito, director of foreign exchange at Credit Agricole SA in Tokyo.
The 19-nation shared currency fell 0.2 percent to $1.1332 as of 10:09 a.m. in Tokyo, after dropping 0.3 percent Monday. It slid 0.3 percent to 134.11 yen, extending a three-day, 1.5 percent decline. Japan’s currency gained 0.1 percent to 118.35 per dollar.
Greek Finance Minister Yanis Varoufakis led a Greek government delegation to Brussels with the aim of winning a six-month bridge package to give Greece the time and financial space to negotiate a post-bailout settlement. Creditors said that the Greek government must abide by the agreements struck by previous administrations. The Greek government said in an e-mailed statement that was “absurd” and “unacceptable.”
