Trichet departure sparks Greece rescue talk

EU heads of state are due to meet on Thursday in Brussels for a special summit on the economy under pressure to restore confidence among investors worried that rising debt in Greece, Portugal and other weaker states in the euro zone could undermine a global recovery.

The summit was called in early January and Trichet had been expected to spend both Tuesday and Wednesday in Australia at central bank meetings. Instead, he is leaving early, officials at the Reserve Bank of Australia and the ECB said.

He will fly on Tuesday to make sure he returns in time for the main session of the European summit, prompting speculation over the meaning of his early departure.

"There is a possibility that the EU could get the ECB involved and support Greece," said Ayako Sera, market strategist at Sumitomo Trust Bank. "Fiscal concerns that have also spread to Spain and Portugal could temporarily ease if we get something on Greece."

The euro inched up on news of Trichet's changed travel plans as dealers speculated about European support for Greece.

"Investors may begin to think that a policy measure directed at Greece's fiscal situation is potentially in the works," said Barclays Capital in a research note.

The euro was trading up 0.4 percent at $1.3706. Last week it fell to $1.3585 on trading platform EBS, its lowest since May 2009.

It has fallen more than 6 percent since mid-December when ratings agencies first downgraded Greece.

Investors have shifted funds out of riskier assets into so-called safe havens, including the Japanese yen and the Swiss franc. Yields on Greek, Portuguese and Spanish debt and the cost of insuring against default have risen sharply.