Euro picks up on Greek bailout plan

The euro gathered steam Friday as Greece submitted a fresh bailout plan ahead of a key European Union meeting that could decide Athens's future in the eurozone, while concerns over China's stock plunge also eased.

In Tokyo afternoon trade, the single currency bought $1.1101 and 135.30 yen, up from $1.1035 and 133.88 yen in New York.

The dollar rose to 121.90 yen from 121.34 yen in US trade.

Greece late Thursday laid out details of a new bailout plan to save it from financial collapse, offering a pensions overhaul and tax hikes in return for debt relief and a rescue loan from the eurozone.

The package, handed in just two hours before a deadline of midnight (2200 GMT), closely resembled an offer put forward by Greece's international creditors before talks broke down last month.

But there was no immediate word on whether it would be enough to unlock fresh aid.

"Greece looks to have handed in its homework at least a couple of hours early. Whether it needs to score 10/10, or 8/10 to be followed by more toing and froing on Friday morning, remains to be seen," Ray Attrill, global co-head of forex strategy at National Australia Bank, said in a commentary.

Eurozone officials will now study the details of the plan before a full European Union summit on Sunday that could determine whether Greece remains in the currency club.

The summit comes a week after Greeks overwhelmingly voted to reject a fresh bailout package offered by its creditors -- the European Commission, the European Central Bank and the International Monetary Fund -- in return for new tax rises and spending cuts.

"The Greek proposal gives the impression that the government is compromising," Yuji Saito, executive director of foreign exchange at Credit Agricole in Tokyo, told Bloomberg News.

"Euro-yen is rising as investors unwind yen buying positions that accompanied risk aversion."

Investors tend to buy the yen during times of uncertainty or turmoil.

Sentiment also picked up as China's main Shanghai stock index jumped more than five percent in morning trade, on the back of government moves to boost the market after a month-long sell-off.

Chinese stock markets had plunged more than 30 percent after a spectacular bull run peaked last month, raising fears for the world's second-biggest economy.

The dollar weakened against other Asia-Pacific currencies.

It eased to 1,128.84 South Korean won from 1,132.82 won on Thursday, to Sg$1.3487 from Sg$1.3501, and to 13,303 Indonesian rupiah from 13,338 rupiah.

The US unit also edged down to 63.38 Indian rupees from 63.54 rupees, to 45.16 Philippine pesos from 45.17 pesos, to 33.92 Thai baht from 33.95 baht, and to Tw$30.97 from Tw$31.01.

The Australian dollar rose to 74.88 US cents from 74.71 cents, while the Chinese yuan firmed to 19.62 yen from 19.53.