U.S. Dollar Eases as Greek Debt Talks Stall

The dollar steadied after giving back gains against the yen early on Thursday as debt negotiations to avert a Greek debt default hit a bump, while the euro treaded water after showing a more limited response.

The U.S. currency fetched 123.88 yen, pulled back from a one-week high of 124.38 reached overnight after data showed the U.S. economy contracted in the first quarter but less than previously estimated.

The greenback benefited as market focus appeared to shift back to prospects of higher U.S. interest rates from the Greek saga, which began the week with optimism that a deal will be finally be concluded.