Euro lower on Greek worries

Tokyo: The euro drifted lower against other major currencies on Tuesday as jitters grew about the high-stakes standoff over Greece`s bailout reform.

The common European currency fell to $1.0937 and 133.15 yen in Tokyo trade from $1.0980 and 133.60 yen Monday.

The dollar edged up to 121.74 yen from 121.66 yen on Monday afternoon.

Many markets around Europe and in New York were closed Monday for public holidays.

Investors are watching closely for any new developments in talks between Greece and its international creditors over unlocking bailout funds, with no deal in sight and 300 million euros of payments due next week.

The discussions with the European Union, European Central Bank and the International Monetary Fund are aimed at releasing the final 7.2-billion-euro tranche of its 240-billion-euro bailout.

But Athens is resisting austerity and reform demands to free up the money and thus avoid possible default that could drive the country out of the eurozone.

"Trade today will be a very tough day to call and is likely to see fluctuations as there is no major data in Asia," said Evan Lucas, a markets strategist in Melbourne at IG Ltd.

"Greece is edging closer to a deal, however, the detail, size and scope of that deal is being blurred by the hour," he said in a client note.

The dollar was underpinned by expectations that the US central bank will raise its key rates in the coming months.

"The central scenario still points to a September liftoff" for US rates, said Cameron Bagrie, chief economist in Wellington at ANZ Bank New Zealand.

"We look set to enter a heightened period of sensitivity. Higher rates will be a good thing; the challenge is to ensure, or be satisfied, there is enough in the fundamentals to ensure equities don`t freak out," he said in a client note.