EUR/USD Drops to 1.1330 as Greece Works on Commitments

The euro stayed lower after a Greek official said the nation was working to finalize a list of pledges to the European Union as part of its four-month bailout extension.

The currency declined versus most major peers yesterday after the Greek government sent a draft list of commitments to auditors. The dollar held its advances over the past week against eight of its 10 most-traded counterparts before Federal Reserve Chair Janet Yellen testifies to Congress amid speculation policy makers will raise interest rates this year.

“Against the backdrop of the deal reached between Greece and eurozone finance ministers last week our economists note that a number of concerns remain, namely the fact that in some countries (including Greece) agreements will have to be ratified by parliaments,” analysts at BNP Paribas SA wrote in a note to clients. Yellen’s remarks may be consistent with market expectations for rate increases in or around September, “which could encourage rebuilding of long dollar positions.”

Bloomberg

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