Investing.com - The dollar rose against the world's major currencies on Wednesday as investors looked beyond Europe's approval of a EUR130 billion package for Greece, realizing the rescue funding will stop the bleeding but won't heal the wound.
In Asian trading on Tuesday, the euro fell against the greenback, with EUR/USD losing 0.11% and trading at 1.3220.
The Greek bailout put an end to fears that Athens was fast approaching a messy default in March, although now the country has won access to bailout funding, investors took time to look farther down the road and realized Greece is far from out of the woods, which bolstered the dollar.
Debt-to-GDP ratios remain very high, and bringing them down 120.5% from 160% by 2020 via tough austerity measures won't be easy.
Meanwhile in the U.S., market sentiments grew that the Federal Reserve will forgo rolling out a third round of quantitative easing, a loose monetary policy tool that aims to push down borrowing rates and battle deflationary pressures by pumping the financial system full of liquidity.
Previous comments from Federal Reserve officials suggesting such a move can't be ruled out weakened the dollar.
Meanwhile in Japan, the central bank there has taken steps to halt the yen's strengthening trend, which also made the dollar more attractive on Wednesday.
Meanwhile, the dollar was up against the pound, with Cable dropping 0.06% to 1.5770.
The greenback was up 0.16% against the yen, with USD/JPY trading at 79.87, and up against the Swiss franc, with USD/CHF gaining 0.07% and trading at 0.9132.
The greenback was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.15% at 0.9984, AUD/USD down 0.23% at 1.0638 and NZD/USD down 0.20% at 0.8322.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% at 79.24.
Later Wednesday, the eurozone is to release preliminary data on manufacturing and service sector activity as well as official data on industrial new orders, a key gauge of production.
Meanwhile, the Bank of England will unveil the minutes of its January policy-setting meeting.
Also Wednesday, the U.S. will release industry data on existing home sales, a leading indicator of demand in the housing market.
In Asian trading on Tuesday, the euro fell against the greenback, with EUR/USD losing 0.11% and trading at 1.3220.
The Greek bailout put an end to fears that Athens was fast approaching a messy default in March, although now the country has won access to bailout funding, investors took time to look farther down the road and realized Greece is far from out of the woods, which bolstered the dollar.
Debt-to-GDP ratios remain very high, and bringing them down 120.5% from 160% by 2020 via tough austerity measures won't be easy.
Meanwhile in the U.S., market sentiments grew that the Federal Reserve will forgo rolling out a third round of quantitative easing, a loose monetary policy tool that aims to push down borrowing rates and battle deflationary pressures by pumping the financial system full of liquidity.
Previous comments from Federal Reserve officials suggesting such a move can't be ruled out weakened the dollar.
Meanwhile in Japan, the central bank there has taken steps to halt the yen's strengthening trend, which also made the dollar more attractive on Wednesday.
Meanwhile, the dollar was up against the pound, with Cable dropping 0.06% to 1.5770.
The greenback was up 0.16% against the yen, with USD/JPY trading at 79.87, and up against the Swiss franc, with USD/CHF gaining 0.07% and trading at 0.9132.
The greenback was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.15% at 0.9984, AUD/USD down 0.23% at 1.0638 and NZD/USD down 0.20% at 0.8322.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% at 79.24.
Later Wednesday, the eurozone is to release preliminary data on manufacturing and service sector activity as well as official data on industrial new orders, a key gauge of production.
Meanwhile, the Bank of England will unveil the minutes of its January policy-setting meeting.
Also Wednesday, the U.S. will release industry data on existing home sales, a leading indicator of demand in the housing market.