* EU/IMF agree on new debt target for Greece
* Euro rises to one-month high, later pares gains
* Japan opposition leader calls for bolder stimulus
By Anooja Debnath
LONDON, Nov 27 The euro bounced to a one-month
high against the dollar on Tuesday after international lenders
agreed a new debt target for Greece, but eased back after a Fed
policymaker's comments boosted the U.S. currency.
Federal Reserve Bank of Dallas President Richard Fisher, an
arch-hawk, voiced concerns at a conference in Berlin about the
Fed's quantitative easing programme.
Fisher's comments helped the dollar index recoup
losses. It was last trading flat at 80.250, off a four-week low
The euro fell to a session low of $1.29565 on trading
platform EBS, well below a one-month high of $1.3010 struck
earlier in the Asian session after the Greek deal was agreed.
International lenders agreed on a package of measures to
reduce Greek debt by 40 billion euros, cutting it to 124 percent
of gross domestic product by 2020 to release urgently needed
loans to keep Greece's economy afloat.
"We think this agreement would be positive for the euro for
now as this deal removes some of the tail risks out of the euro
zone," said Bernd Berg, global FX strategist at Credit Suisse.
With the Greek deal out of the way, some traders said they
would take profits which could wind back the single currency's
recent gains. Traders cited bids at $1.2940 with near-term
support at its 55-day moving average of $1.29187.
The euro had risen nearly two percent against the dollar in
the past two weeks, supported by expectations for a deal on
Greece and also due to optimism that U.S. lawmakers will reach
an agreement to avoid the 'fiscal cliff' of tax increases and
spending cuts due to take effect next year.
Some analysts said the Greek deal was a stop-gap arrangement
and the worsening economic outlook for the euro zone under
relentless austerity measures would keep the euro under
pressure, especially against the dollar.
"We remain unconvinced that the measures will restore
long-term debt sustainability to Greece, rather they are likely
to prove a short-term fix to delay more unpalatable political
decisions," Lee Hardman, currency analyst at Bank of Tokyo
Mitsubishi said in a note.
The yen slipped after Japan's opposition leader, Shinzo Abe,
the country's likely next prime minister after an election next
month, reiterated calls for bolder monetary and fiscal stimulus
to revive the country's economy.
The Japanese currency has fallen sharply over the past
couple of weeks on mounting speculation that a new government
after Dec. 16 general elections will coerce the Bank of Japan
into easing monetary policy aggressively.
The dollar edged up 0.1 percent to 82.10 yen, still
off a 7-1/2 month high of 82.84 yen hit last Thursday.
Data from the U.S. Commodity Futures Trading Commission
shows that currency speculators increased their bearish bets
against the yen in the week ended Nov. 20, a period when the
Japanese currency began its slide.
"In the short term, until elections, I think dollar/yen
should stay a bit firm," said Roy Teo, FX strategist for ABN
AMRO Bank in Singapore, adding that the dollar might test the
year-to-date high of 84.187 yen set in mid-March.
"We may see dollar/yen head towards this year's high ... but
I don't see it as a sustainable move," he said.