* Eur/dlr under pressure but support likely near $1.3500
* Euro around 17-mth low vs Swiss franc after SNB comments
* Sterling dips after comments from BoE's Sentance
By Kaori Kaneko
TOKYO, March 19 (Reuters) - The euro stabilised but remained
under pressure on Friday after Greece said it could not achieve
promised deficit cuts if its borrowing costs remain so high.
The euro had fallen broadly the previous day on worries over
Greece's debt problems after a media report said the country was
not optimistic about aid from euro zone members and could call in
the International Monetary Fund if European leaders do not agree
on a rescue plan next week.
But Greece said aid from the global lender was a last resort.
[]
"Uncertainty surrounding a rescue for Greece suggests that
the euro is facing deep structural problems and a quick
resolution is unlikely," said Kosuke Hanao, head of Treasury
product sales at HSBC in Tokyo.
"So, the euro will struggle to gain for sometime to come,
even when the dollar slides against other major currencies," he
said.
The euro was steady around $1.3620 <EUR=> after falling as
much as 1 percent to $1.3586 on trading platform EBS the previous
day. The European single currency has pulled back from a
five-week high of $1.3819 hit on EBS earlier this week.
Near term support for the euro is seen around $1.3500 as the
currency stayed above that level last week, traders said.
The European single currency also hovered around a 17-month
low against the Swiss franc after Swiss National Bank board
member Jean-Pierre Danthine said on Thursday that Swiss firms and
consumers should prepare for rising borrowing costs as interest
rates cannot stay ultra-low forever. []
The euro was steady at 1.4405 francs <EURCHF=> after falling
as far as 1.4355 francs on EBS on Thursday, its weakest level
since October 2008.
The euro, however, found some bids against sterling after
Bank of England policymaker Andrew Sentance said there is a risk
Britain may suffer a double-dip recession, although it was not
the most likely scenario. [] []
The euro rose 0.2 percent against sterling to 89.44 pence
<EURGBP=> while sterling fell 0.2 percent to $1.5224 <GBP=D4>.
The dollar was seen supported against the yen by the regular
commercial needs of Japanese firms on every fifth day of the
month and before a three-day weekend in Japan, but the upper end
of 90 yen was capped by heavy sell orders, traders said.
The dollar rose 0.1 percent to 90.45 yen <JPY=> and the euro
was up 0.2 percent at 123.23 yen <EURJPY=R>.
Higher-yielding currencies such as the Australian dollar
retained strength on firm regional stocks. Asian stocks
<.MIAPJ0000PUS> <> rose on Friday with investor expectations
of a steady economic recovery helping markets close in on a sixth
straight week of gains.
"Currencies of countries with resources such as the Aussie
and the Canadian dollar are gaining support as global stocks have
been basically firm," said a trader at a Japanese bank.
"We may see some profit-taking in those currencies but they
are likely to remain firm," he said.
The Aussie rose 0.2 percent to $0.9221 <AUD=D4>, in sight of
an eight-week high of $0.9253 hit this week. Against the yen, the
Aussie advanced 0.3 percent to 83.39 yen <AUDJPY=R>.
Against the Canadian dollar, the greenback was up 0.2 percent
at C$1.0162 <CAD=D4> but stayed within a reach of a 20-month low
of C$1.0071 touched on Wednesday.
Traders say the pair may hit parity in the near term on
speculation that Canadian interest rates may soon rise. The
market awaits Canadian consumer inflation data for February and
retail sales for January due later in the day. <ECONCA>
(Additional reporting by Satomi Noguchi; Editing by Edwina
Gibbs)
