Euro up after Greek vote on austerity package

The euro rose to a three-week high against the dollar in Asia on Thursday, as concern over Greece's debt problems eased after its parliament passed an austerity package that will help it avoid a default. The euro rose to $1.4511 in Tokyo afternoon trading from $1.4429 in New York late Wednesday, topping $1.45 while the European unit edged up to 116.63 yen from 116.61 yen. The dollar fell to 80.34 yen from 80.80 yen. Greek lawmakers on Wednesday approved 28.4 billion euros package of spending cuts, unlocking a 12-billion-euro payout from the European Union and the International Monetary Fund. The funds represent the fifth tranche of a 110-billion-euro aid package agreed last year with the EU and IMF, and are needed for Greece to pay off its mammoth debts. Markets are still closely watching a second vote on the detail behind the measures that will take place later Thursday. "Although the vote outcome came in line with expectation, the market is confirming risks to the euro stemming from the Greek debt problem are diminishing step by step," said Dai Sato, dealer at Mizuho Corporate Bank. "Upbeat stock markets are also helping improve risk sentiment, lifting the euro against the dollar," Sato said. US and European stock markets took a cue from the news from Greece. Expectation for a rate hike by the European Central Bank at its policy meeting next week helped underpin the euro against the dollar, noted Yuji Saito, foreign exchange market director at Credit Agricole in Tokyo. European firms were also buying the euro to repatriate their overseas earnings halfway through the year, Saito told Dow Jones Newswires. The dollar was lower against other Asian currencies, falling to Sg$1.2288 from 1.2383 on Wednesday, to 1,068.35 South Korean won from 1,077.70 and to Tw$28.72 from Tw$28.89. It also retreated to 8,591.75 Indonesian rupiah from 8,617.50, to 30.71 Thai baht from 30.85 and to 43.36 Philippine pesos from 43.52.