Euro trades narrowly ahead of German-Greek talks

TOKYO: The euro traded in a tight range in Asian trade Friday ahead of a closely watched meeting between German Chancellor Angela Merkel and Greek Prime Minister Antonis Samaras over financial aid for Athens.

The European common currency bought $1.2564 and 98.66 yen in Tokyo morning trade, slightly stronger than $1.2562 and 98.59 yen in New York late Thursday.

The dollar changed hands at 78.50 yen against 78.47 yen in US trade.

The outcome of the meeting between Merkel and Samaras in Berlin later Friday was likely to weigh on the euro, said Masafumi Yamamoto, chief FX strategist at Barclays Bank in Tokyo.

"It is likely difficult to have Merkel promise for early additional support for Greece at the moment," Yamamoto said in a note.

Speaking after a meeting with Samaras, Eurogroup chief Jean-Claude Juncker this week urged debt-hit Athens to ramp up reform efforts to secure continued financial aid from the European Union and International Monetary Fund.

A longer deadline for Greece to meet conditions agreed with international creditors would depend on the findings of inspectors who are to arrive in Athens next month, he said.

"As regards the lengthening of the adjustment period, it will depend on the findings of the troika mission," Juncker said in reference to auditors from the EU, European Central Bank and IMF.

In dollar-yen trade, the greenback was under pressure as US Treasury yields declined on speculation that the Federal Reserve would launch fresh easing measures to power the world's biggest economy.