* Boehner's comments boost risk appetite
* Euro dips, but up over half a cent from Wednesday's low
* Dollar/yen seen in 81.00 to 83.00 range - trader
By Masayuki Kitano
SINGAPORE, Nov 29 The euro eased versus the
dollar on Thursday, but its losses were limited after comments
from U.S. policymakers rekindled hopes for a deal to avoid a
sharp fiscal tightening that could hurt the global economy.
"For the moment, the U.S. fiscal cliff seems to be a
dominant theme in the market," said Katsunori Kitakura,
associate general manager of market-making at Sumitomo Mitsui
U.S. House Speaker John Boehner, the top Republican in
Congress, voiced optimism that Republicans could broker a deal
with the White House to avert a fiscal crisis, even though he
repeated his opposition to raising income tax rates on high
President Barack Obama said on Wednesday he hoped to reach
an agreement with Congress before Christmas.
Investors fear the planned tax increases and spending cuts
due to start at the beginning of next year totalling about $600
billion could tip the world's biggest economy into recession and
depress the global economic outlook.
The euro eased 0.1 percent from late U.S. trade on Wednesday
to $1.2947, but still held well above Wednesday's
intraday low of $1.2880, supported by an improvement in
investors' risk appetite.
A drop in the 10-year Italian government bond yield to its
lowest level since February 2011 on Wednesday was another
supportive factor for the euro, as it suggests that investor
jitters over the euro zone's sovereign debt crisis are
The single currency faces resistance from the daily Ichimoku
cloud top around $1.2994 but a break there could open the way
for the euro to test a four-week high of $1.3010 hit on Tuesday
after Greece's international lenders agreed to unblock aid funds
Market players, however, remain concerned about some
elements of the latest aid deal for Greece, agreed to by euro
zone finance ministers and the International Monetary Fund
earlier this week, with Greece's ability to fully implement a
debt buy-back a looming issue.
Against the yen, the euro held steady at 106.34 yen
, not too far from a seven-month high of 107.135 yen
hit on Monday.
The dollar edged up 0.1 percent to about 82.15 yen,
inching away from a one-week low of 81.68 yen hit on Wednesday.
The greenback has seen a corrective pull-back since hitting
a 7-1/2 month high of 82.84 yen last Thursday.
"I can feel a bit of long dollar/yen fatigue setting in,"
said Jeffrey Halley, FX trader for Saxo Capital Markets in
There were some dollar offers near 82.50 yen, while dollar
bids were lurking in the 81.60 yen to 81.80 yen area, he said.
The yen has come under pressure recently due to market
speculation about the chances of aggressive monetary easing in
Japan following a likely change in government next month.
Main opposition leader Shinzo Abe, a front-runner to become
prime minister after the Dec. 16 election, has called for
radical change in monetary policy, including unlimited easing,
sparking a four-percent fall in the yen earlier this month.
The dollar is likely to trade in a 81.00 yen to 83.00 yen
range ahead of Japan's election, said a trader for a Japanese
bank in Singapore.
"Dollar/yen continuing to see some short-term players
building on longs," the trader said, adding that most market
players he had contact with were expecting that sort of range