* Euro supported on strong demand for Greek bond issue
* Euro up 0.2 pct at $1.4175 <EUR=>
* Dollar slips, traders take profits on last week's gains
(Adds comment, updates prices)
By Neal Armstrong
LONDON, Jan 25 (Reuters) - The euro rose against the dollar
and the yen on Monday as an offer of five-year Greek sovereign
bonds met strong demand.
Technical support also boosted the single currency against
the dollar, analysts said, while traders booked profits on the
U.S. currency's gains last week.
"IMM data has shown people have built up short positions in
the euro and the fact that the Greek bond issue Monday is going
with such ease has made some wary of maintaining those
positions," said Mark Oswald, FX and rates strategist at
Monument Securities.
By 1240 GMT, the euro was up 0.1 percent on the day at
$1.4163 after touching a high versus the dollar <EUR=> of
$1.4197, as bank sources said demand for the Greek issue had
reached about 16 billion euros. []
The euro pulled further away from a near six-month low hit
against the dollar last week when concerns about Greece's heavy
indebtedness saw heavy selling of the common European currency.
Analysts said the pair was also supported as it held above
its 14-day moving average around $1.4130.
"I don't think this means we are going to have a meaningful
rally in the euro, but the weak holders of euro shorts have
clearly been knocked back," added Monument's Oswald.
The single currency fell to $1.4029 last week -- its
weakest since late July -- when investors dumped the euro due on
growing concerns about Greece's debt problems.
Greece has been trying to convince markets it can manage its
ballooning debts. The syndicated sale of five-year bonds was
seen as an important test of investor demand.
Commodity Futures Trading Commission data released on
Friday showed net euro short positions rose to 25,282 in the
week ended on Jan. 19 from 17,917 the previous week.
[]
The euro also briefly rose above 128.00 yen <EURJPY=R>,
moving further away from a nine-month low of 126.55 yen hit on
trading platform EBS on Friday.
The dollar <JPY=> was up 0.4 percent to 90.27 yen.
DOLLAR EASES
Reports embattled Federal Reserve Chairman Ben Bernanke was
edging closer to winning confirmation to serve a second term
also calmed markets, dimming the dollar's safe-haven appeal,
after his prospects were seen as shaky last week.
[]
The Australian <AUD=D4> and New Zealand <NZD=D4> dollars
recovered from their weakest versus the U.S. unit in roughly a
month, hit last week when signs of growth in China and Beijing's
moves to curb bank lending were seen setting the stage for
further monetary tightening.
Commodity-linked currencies had suffered as investors
speculated that moves to rein in rapid growth may cut demand for
natural resources in China
Analysts said investors would follow developments in U.S.
President Barack Obama's crackdown on U.S. banks announced last
week as the market gauges its potential impact on the dollar.
The Australian and New Zealand currencies each rose 0.7
percent against the U.S. dollar. Versus a currency basket, the
dollar <.DXY> was down 0.1 percent on the day at 78.169.
The euro <EURCHF=> traded at 1.4727 francs, pulling away
from a 10-month low around 1.4670 hit last week when Swiss
National Bank Chairman Philipp Hildebrand said he would continue
to prevent an excessive appreciation in the franc
[]
(Additional reporting by Naomi Tajitsu)
