FX round-up: Euro falls as Greece talks drag on

Date: Wednesday 01 Feb 2012

Less than inspiring US economic data and frustration over Greece's prolonged debt negotiations sent the euro down against the dollar on Tuesday.

The euro traded at $1.3085 from $1.3143 late Monday ahead of widely expected agreement to enforce stricter debt limits. Jitters ahead of any resolution sent Portuguese bond yields to record highs.

Greece’s prime minister Lucas Papademos lifted hopes by saying a deal with private debt holders should be reached by the end of the week.

Demand for safety sent the dollar and Japanese yen higher. The dollar index, which tracks the US currency greenback against six currencies, rose to 79.279, from late Monday’s 79.221. The euro changed hands at Y99.77 from Y100.32 previously.

Sterling struck over a two month high against the dollar at $1.5797 before easing to $1.5764 from $1.5705. Analysts said end of month dollar selling helped the UK currency's strong gains. The euro fell 0.7% at 83p.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE