The dollar fell against most other major currencies on Thursday, while the euro rose on waning fears of a Greek default. The euro, which has been sliding for months on a massive bond-buying program and anxieties about Greece possibly defaulting, rose against the dollar on Thursday despite weaker-than-forecast euro zone private sector business growth.
German Chancellor Angela Merkel was expected to tell Greece’s prime minister in a meeting on Thursday that she wants to keep Greece in the single currency area and avoid a catastrophic default, while seeking commitments in technical talks on measures to make public finances sustainable.
“Maybe there is a glimmer of hope the Greek situation may be resolved,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York. “That supports the euro.”