Tokyo - The euro held steady on Tuesday as traders awaited a list of Greece's proposed reforms that are crucial to winning a four-month extension of its huge international bailout, and avoiding a disastrous default.
In Tokyo, the common currency was mixed at $1.1327 and 134.89 yen, against $1.1337 and 134.63 yen in New York.
The dollar ticked up to 119.09 yen from 118.76 yen, as markets eye the start of US Federal Reserve chief Janet Yellen's twice-yearly Capitol Hill hearings on Tuesday which will give the central bank's assessment of the US economy and possibly a fresh timeline for hiking interest rates.
Greece was to hand in a delayed list of proposed reforms on Tuesday morning after missing a Monday deadline set by its international lenders.
A Greek government source insisted late on Monday that the proposals would arrive in time for eurozone finance ministers - the Eurogroup - to discuss them in a conference call on Tuesday afternoon.
However, a conditional deal that would give Athens a lifeline to pay its bills and avoid a possible exit from the eurozone is contingent on reforms deemed satisfactory by the so-called “troika” of the European Commission, the European Central Bank and the International Monetary Fund.
Time is of the essence and the stakes are high, with Greece's current 240-billion-euro bailout programme due to expire on Saturday and several European parliaments still needing to approve any extension.
If Athens fails to win more time and the bailout expires, Prime Minister Alexis Tsipras's month-old government risks running out of money, triggering a likely run on banks and even possible ejection from the 19-country eurozone.
Despite high hopes that Greece can secure a deal with its lenders, analysts warned that the bailout extension would only offer temporary relief.
“Even if agreed today, a more detailed reform programme needs to be agreed by April,” Ray Attrill, global co-head of foreign exchange strategy at National Australia Bank, said in note.
“So whatever happens later today, the Greece issue cannot be... put to bed for another three to four months.”
Currency traders will be eyeing Yellen's comments to see how the Fed assesses the state of the world's top economy and when it might start lifting interest rates from near zero, currently expected by mid-year.
AFP