FOREX-Euro steady in early Asia, all eyes on Cyprus

Sun Mar 24, 2013 7:02pm EDT

Related Topics

* Markets hoping for a last-minute deal for Cyprus

* Euro steady vs dollar & yen, markets generally calm

* Aussie dlr holds firm, not far from 7-week high vs USD

By Ian Chua

SYDNEY, March 25 (Reuters) - The euro was steady in Asia as nervous markets wait to find out if Cyprus will be able to meet a Monday deadline to clinch a 10 billion euro ($13 billion) bailout from international lenders and avert a collapse of its banking system.

The euro was at $1.2974, barely changed from late New York levels on Friday. Immediate support is seen around $1.2844, last week's low, and a break there would open up the way to $1.2661, a trough plumbed in November.

Against the yen, the common currency bought 122.64 steady from where it traded in New York late on Friday.

"The market is still hopeful that we'll get some kind of a deal. It more likely they do announce one before European markets open," said Greg Gibbs, senior currency strategist at RBS in Singapore.

"We might get a small relief rally if we do get one, but markets will then very quickly turn to the risk of a bank run and whether conditions for the aid will be implemented smoothly."

The dollar index held its ground at 82.436. Against the yen, the greenback was also steady 94.52.

Commodity currencies were calm for now with the Australian dollar at $1.0443, not far off a seven-week high of $1.0460 set Friday.

There is no major economic data due in Asia on Monday, leaving the focus squarely on developments in Cyprus.

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