Publications
Partners
Singapore -The dollar was firm in Asia on Monday with investors focusing on the timing of a US interest rate increase after debt-strapped Greece reached a bailout agreement with its creditors.
The dollar rose to 124.16 Japanese yen in late-morning trade from ¥124.09 late on Friday in New York.
Against the euro, the dollar was unchanged $1.0830 after pushing to a three-month high on Friday.
The euro was changing hands at ¥134.46 from 134.38.
Japanese markets were closed Monday for a public holiday and will reopen on Tuesday.
Analysts said the dollar was in focus after US Federal Reserve chair Janet Yellen last week stuck to her forecast for an increase in the US central bank's key interest rate later this year, predicting a pickup in the US economy.
The Fed has kept markets on edge for a raise in the federal funds rate, which has been locked extraordinarily at zero since the end of 2008 to pull the economy back from the Great Recession.
"The US dollar is firm. Grexit worries have subsided," DBS Bank said in a market commentary, referring to fears of debt-strapped Greece exiting the eurozone if it had not met bailout terms demanded by creditors.
"Focus returned to monetary policy divergences. Europe and Japan are set to keep their quantitative easing programmes running well into 2016... The US is, on the other hand, looking to hike rates and normalise monetary policy," it added.
ANZ bank said that "with Greece out of the way, the US Fed's expected rate lift-off is back as the market driver" for currency traders.
A rise in US interest rates will attract investors to the dollar for higher returns, driving up its value.
In Greece, banks will reopen on Monday after the country last week agreed to a tough fiscal package to earn a three-year bailout from its international creditors.
A bridging loan of €7.16bn granted by the European Union last week will enable Greece to make a €4.2bn payment to the European Central Bank on Monday as well as repay debts to the International Monetary Fund outstanding since June.
"Grexit worries have been put to the backburner for now, but it does not imply that discussions on the third bailout deal will be smooth-sailing," DBS Bank said.
