Yen Falls, Erases Losses vs. Euro

The Japanese yen retreated today against the US dollar and the euro after Greece received bailout from the European Union. The currency pared its losses versus the euro, though, and gained against the Great Britain pound.
Greece got its bailout at last, easing concerns among investors and their desire for safety of Japan’s currency. Forex market participants aren’t certain that the rescue package would make much difference for the struggling economy of the Hellenic Republic, leading to some volatile swings against the euro as traders were trying to make up their mind about the situation in Greece. The yen move sideways against the dollar after the initial fall and was rising versus the pound for the most part of the trading session, making a small pause as FX traders were digesting the news from Europe.
The yen also fell after US stocks gained. The Standard & Poor’s 500 rose 0.5 percent to 1,367.76, the highest level since June 2008, before retreating 0.2 percent. The Dow Jones Industrial Average jumped above 13,000 for the first time since May 2008.
USD/JPY advanced from 79.61 to 79.74 as of 23:15 GMT today. EUR/JPY was at about 105.52 after opening at 105.44, while the daily maximum was 105.99 and the minimum was 105.03. GBP/JPY fell from 126.15 to 125.79.

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