Forexpros – The dollar rose against the world’s major currencies on Tuesday as European leaders continued hammering out details surrounding a EUR130 billion bailout package for Greece behind closed doors, making a once-jubilant market a little edgy.
In Asian trading on Tuesday, the euro fell against the greenback, with EUR/USD losing 0.36% and trading at 1.3194.
Over the weekend, European policymakers suggested they were ready to approve giving Greece access to a EUR130 billion rescue fund.
Greece needs the money to avoid a messy default in March, and has agreed to accept tough austerity measures such as public-sector layoffs and pension reforms in exchange for assistance.
European policymakers opened a much-anticipated meeting on Monday, and while sentiments were high that Greece would receive the rescue funding, negotiators were still going over the details by the time Asian markets were well on their way with Tuesday trading.
Details include bailout funding allocation as well as terms surrounding private-sector Greek debt.
German Finance Minister Wolfgang Schaeuble stated earlier he was confident the deal would become a reality although he did point out there was much work to do.
Still, profit taking kicked in Tuesday and a risk-on global trading session also fueled by Chinese monetary easing came to a close as investors sought their way back to the safe and liquid greenback.
Fresh sentiment was also building that even if Athens does avoid defaulting, the Greek as well overal European economies are far from out of the woods.
Meanwhile, the dollar was up against the pound, with Cable dropping 0.24% to 1.5812.
The greenback was up 0.17% against the yen, with USD/JPY trading at 79.76, and up against the Swiss franc, with USD/CHF gaining 0.35% and trading at 0.9148.
The greenback was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.28% at 0.9964, AUD/USD down 0.64% at 1.0687 and NZD/USD down 0.63% at 0.8346.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.30% at 79.33.
Greece will serve as the market’s top weather vane on Tuesday, as hints of fresh setbacks could spark a rush to the greenback.
Forexpros
