U.S. Dollar Firms as Greek Debt Concerns Linger

The dollar edged higher against its peers on Tuesday, drawing support as the euro was pressured by increasing worries that Greece could default on its debt and eventually exit the single currency.  The euro eased 0.1 percent to $1.0731 EUR=, down from Friday’s one-week high of $1.0849. The common currency was knocked back on Monday after public sector entities in Greece were ordered to transfer idle reserves to the central bank to help alleviate a cash squeeze.

Athens is in negotiations with its euro zone partners and the International Monetary Fund over reforms required to unlock remaining bailout funds before it runs out of cash and loses its ability to repay debt.

The latest development in the Greek debt saga came after the euro had climbed 1.9 percent against the greenback last week amid a pullback in expectations for a June interest rate hike by the Federal Reserve.

Reuters

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