* Cyprus clinches last-ditch deal with international lenders
* Deal endorsed by euro zone finance ministers
By Masayuki Kitano
SINGAPORE, March 25 The euro rose broadly on
Monday after Cyprus clinched a deal with international lenders
for a bailout aimed at saving the country from financial
The single currency rose 0.4 percent to $1.3043,
having traded at roughly $1.2985 before news of a draft deal for
Cyprus reached the market. Against the yen, the euro climbed 0.8
percent on the day to 123.75 yen.
The plan, swiftly endorsed by euro zone finance ministers,
involves winding down Popular Bank of Cyprus, also known as
Laiki, and shifting deposits below 100,000 euros to the Bank of
Cyprus to create a "good bank".
Deposits above 100,000 euros, which under EU law are not
guaranteed, will be frozen and used to resolve debts.
German Finance Minister Wolfgang Schaeuble said the Cyprus
bailout deal does not require the Cypriot parliament's approval.
Analysts said the euro might rise to roughly around $1.3100
to $1.3150 as investors pare back bearish bets versus the single
currency, but were sceptical about the chances of a sustained
"I have regarded the problems facing Cyprus as being only a
short-term trading factor for the market," said Daisuke
Karakama, market economist for Mizuho Corporate Bank in Tokyo.
"I am sticking to the view that the euro will eventually be
dragged down due to its economic fundamentals," Karakama said.
The EU had given Cyprus until Monday to raise the 5.8
billion euros it needs to secure a 10 billion euro international
lifeline. Without aid, there had been concerns that Cyprus may
be forced to exit the euro.
The yen, which tends to rise in times of market stress,
retreated broadly, with the dollar rising 0.5 percent to 94.89