Investing.com - The U.S. dollar turned broadly higher against its major counterparts on Tuesday, as uncertainty over Greece’s ability to overcome its debt crisis despite the announcement of a new bailout package weighed on sentiment.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD falling 0.22% to hit 1.3213.
Euro zone finance ministers agreed earlier to the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
But investors remained wary amid concerns that a general election in Greece, which is expected to take place in April, could result in problems implementing the terms of the package.
Meanwhile, a report on the sustainability of Greece’s debt by the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said that "additional debt relief" will be required in the future.
The greenback was also higher against the pound, with GBP/USD retreating 0.28% to hit 1.5805.
Official data showed earlier that U.K. public finances recorded their largest monthly surplus since January 2008 last month.
Public sector net borrowing or the difference in value between public spending and income swung to a surplus of GBP10.7 billion in January, from a deficit of GBP11.1 billion the previous month.
The greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.07% to hit 79.68 and USD/CHF rising 0.22%, to hit 0.9136.
Earlier in the day, official data showed that Switzerland's trade surplus declined unexpectedly in January, falling to CHF1.55 billion from CHF2 billion the previous month as exports fell 3.4% on the month.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.27% to hit 0.9963, AUD/USD shedding 0.75% to hit 1.0673 and NZD/USD sliding 0.61% to hit 0.8348.
Also Tuesday, the Reserve Bank of Australia said in the minutes of its February meeting that it remained willing to ease policy if commodity and raw material demand were to “weaken materially” although it left rates unchanged this month.
Meanwhile, the Reserve Bank of New Zealand said that its inflation expectations fell to 2.5% in the first quarter from 2.8% the previous quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.19% to hit 79.25.
Finance ministers from the euro zone were scheduled to continue talks in Brussels throughout the day on Tuesday.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD falling 0.22% to hit 1.3213.
Euro zone finance ministers agreed earlier to the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
But investors remained wary amid concerns that a general election in Greece, which is expected to take place in April, could result in problems implementing the terms of the package.
Meanwhile, a report on the sustainability of Greece’s debt by the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said that "additional debt relief" will be required in the future.
The greenback was also higher against the pound, with GBP/USD retreating 0.28% to hit 1.5805.
Official data showed earlier that U.K. public finances recorded their largest monthly surplus since January 2008 last month.
Public sector net borrowing or the difference in value between public spending and income swung to a surplus of GBP10.7 billion in January, from a deficit of GBP11.1 billion the previous month.
The greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.07% to hit 79.68 and USD/CHF rising 0.22%, to hit 0.9136.
Earlier in the day, official data showed that Switzerland's trade surplus declined unexpectedly in January, falling to CHF1.55 billion from CHF2 billion the previous month as exports fell 3.4% on the month.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.27% to hit 0.9963, AUD/USD shedding 0.75% to hit 1.0673 and NZD/USD sliding 0.61% to hit 0.8348.
Also Tuesday, the Reserve Bank of Australia said in the minutes of its February meeting that it remained willing to ease policy if commodity and raw material demand were to “weaken materially” although it left rates unchanged this month.
Meanwhile, the Reserve Bank of New Zealand said that its inflation expectations fell to 2.5% in the first quarter from 2.8% the previous quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.19% to hit 79.25.
Finance ministers from the euro zone were scheduled to continue talks in Brussels throughout the day on Tuesday.