FOREX-Euro binds solid but renewed Greek woes weigh

Thu Mar 18, 2010 8:29pm EDT Related News Euro extends losses vs dollar after Greek newsThu, Mar 18 2010Yen edges up after BOJ increases size of funding opWed, Mar 17 2010Dollar rises to 2-week high vs yen as yen slidesSun, Mar 7 2010

* Greece says high borrowing costs threaten deficit cut plan

Currencies

* Euro around 17-mth low vs Swiss franc after SNB comments

* Dollar/yen sell orders likely lie at upper end of Y90

* Dollar demand from Japan expected before 3-day holiday

By Kaori Kaneko

TOKYO, March 19 (Reuters) - The euro stabilized but remainedunder pressure on Friday on renewed concern about Greece afterAthens said it may not be able to achieve its promised deficitcuts if its borrowing costs remain so high. [ID:nLDE62H0LL]

But Greece dismissed a report that it was planning to turn tothe IMF as soon as early April if European Union leaders do notagree on a rescue plan next week, calling aid from the globallender a last resort and saying all options were still open.[ID:nLDE62H1HZ]

The European single currency also hovered around a 17-monthlow against the Swiss franc after Swiss National Bank boardmember Jean-Pierre Danthine said on Thursday that Swiss firms andconsumers should prepare for rising borrowing costs as interestrates cannot stay ultralow forever. [ID:nLDE62H2EE]

The dollar is expected to be supported against the yen by theregular commercial needs of Japanese firms on every fifth day ofthe month and before a three-day weekend in Japan, but the upperend of 90 yen will be capped by heavy sell orders, traders said.

"The euro is on a downward trend as the market has beenredirected to worries over Greece, because the uncertainties overthe prospects for it have not been wiped away," said a trader ata Japanese bank.

"As for today, without major economic events and before thelong weekend in Japan, the market will likely be driven by supplyand demand," he said.

The euro was steady at $1.3612 EUR=, having fallen as faras $1.3586 on trading platform EBS on Thursday. The Europeansingle currency has pulled back from a five-week high of $1.3819hit on EBS earlier this week.

Near term support for the euro is seen around $1.3500 as thecurrency stayed above that level last week, the trader at aJapanese bank said.

Against the Swiss franc, the euro edged down 0.1 percent to1.4390 francs EURCHF= after falling as far as 1.4355 francs onEBS on Thursday, its weakest level since October 2008.

The euro was up flat against the yen at 123.04 yen EURJPY=Rwhile the dollar rose 0.1 percent to 90.51 yen JPY=. (Reporting by Kaori Kaneko; Editing by Hugh Lawson)

Currencies