Greek debt talks are set to resume today after leaders split last night without managing to come to an agreement over a bailout plan.Last night’s meeting between the Greek prime minister Lucas Papademos and coalition government party leaders failed to reach a conclusion, as concern was raised over the potentially devastating effect of austerity cuts in the country. Unemployment is already at 19 per cent, but a default on the debt would have severe ramifications across the European Union and elsewhere. The leaders must reach a deal on 130 billion euro (£108 billion) of the debt,  without which it will face bankruptcy in late March.The consequence of the delayed action on foreign currencies was to drive the euro down, as well as riskier currencies in Asia. Speculation importers took advantage of favourable exchange rates on the dollar after a four-day advance for the Asian currencies. This action reversed the gains made, with the Thai baht, South Korean won and Taiwan dollar leading the losses.Henry Lin, a Taipei-based foreign-exchange trader at Taiwan Shin Kong Commercial Bank, said: “Investors are unsure whether the recent rally reflects the risk of the European debt crisis that’s still not fully resolved.”The Asia Dollar Index, which tracks the region’s ten most- traded currencies excluding the yen, dropped 0.3 per cent, paring its rise this year to 2.1 per cent. The Indonesian rupiah dropped for a second day, with new data showing their domestic economic growth is starting to waver. The Chinese yuan dropped slightly, as well as the Philippine peso and Vietnam’s dong.The euro fell against other currencies in Asia at the start of the day, and it looks like it will lose out against the Japanese yen and American dollar as a consequence of the Greek debt question. National Australia Bank noted that an agreement was meant to have been made last week, which is why investors may start this week a little more cautiously.For more information on foreign exchange treasury services and risk management, visit our Corporate FX sitePublished by Jamie Jemmeson