By Ian Chua
SYDNEY (Reuters) - The euro firmed early on Friday, while the safe-haven yen slipped on signs that cash-strapped Greece was making some progress in its efforts to secure fresh funding.
The common currency climbed 0.6 percent against the yen to 134.600 > and put on 0.2 percent to $1.10575 > as Athens took a step forward by sending a package of reform proposals to its euro zone creditors.
"Whether it needs to score 10/10, or 8/10 to be followed by more to-ing and fro-ing on Friday morning, remains to be seen," said Ray Attrill, global co-head of FX strategy at National Australia Bank.
Indeed, traders said the euro's inability to sustain levels above $1.11 was a clear signal that euro bulls were none too excited just yet. The common currency peaked at $1.11250 overnight.
Also helping risk sentiment were tentative signs Chinese equities could be stabilising after a big rally on Thursday.
The safe-haven yen duly retreated, allowing the greenback to climb back above 121.500 yen >, from a seven-week low of 120.410 set mid-week.
Commodity currencies such as the Australian dollar held steady. The Aussie, often sold off in times of heightened risk aversion, stayed above 74 U.S. cents > and kept off a six-year trough of $0.7372 set mid-week.
Sterling drifted up to $1.5371 >, from a one-month low of $1.5330. It was unmoved by the Bank of England's widely expected decision to keep its benchmark rate at a record low 0.5 percent.
There is no major data out of Asia on Friday, leaving the focus on Chinese equities and Greece. A speech by Federal Reserve Chair Janet Yellen on the U.S. economic outlook - due at 1630 GMT - will be the major event of the day.
Traders said any resolution to Greece's debt crisis will help remove a key uncertainty blighting the global picture and perhaps give the Fed added confidence to start lifting interest rates later in the year.
Kansas City Fed Bank President Esther George said on Thursday the U.S. central bank may stumble into a "trap" if it continued waiting for more data to justify an initial interest rate increase, risking a quick takeoff of inflation or other problems.
(Editing by Richard Borsuk)
