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Dollar broadly higher vs. other majors amid Greek deal hopes

Published 07/01/2015, 06:17 AM
© Reuters.  Dollar broadly stronger vs. rivals as Greece remains in focus
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Investing.com - The dollar was broadly higher against a basket of other major currencies on Wednesday, amid news Greece was ready to accept most conditions from its international creditors in order to reach a deal over its debt crisis.

EUR/USD was down 0.18% to 1.1121, easing off lows of 1.1097 hit earlier in the session.

The euro found some support after the Financial Times reported that Greek Prime Minister Alexis Tsipras was prepared to accept creditors' demands for a bailout with only a few minor changes.

The news came after the International Monetary Fund confirmed that the Greek government failed to make a scheduled €1.6 billion loan repayment by close of business on Tuesday.

The fund said Greece can now only receive further funding after its arrears are cleared. Greece asked for a last-minute repayment extension on Tuesday, which the fund said it will consider "in due course."

A default by Greece wiIl add to fears over the country’s solvency and fuel doubts over the condition of Greek banks and the collateral they use for European Central Bank loans.

Euro zone finance ministers were to hold discussions later Wednesday but German Chancellor Angela Merkel has ruled out further negotiations until after Sunday's referendum in Greece on whether to accept the terms proposed by lenders for extending the country’s bailout.

Earlier Wednesday, research group Markit said that Germany's manufacturing purchasing managers' index remained unchanged at 51.9 last month, in line with expectations.

France's manufacturing PMI ticked up to 50.7 in June from 50.5 the previous month, confounding expectations for an unchanged reading.

The pound was also lower, with GBP/USD down 0.38% to 1.5650.

Markit earlier reported the U.K. manufacturing PMI fell to a 26-month low of 51.4 last month from 51.9 in May, whose figure was revised from a previously estimated reading of 52.0.

Analysts had expected the index to rise to 52.5 in June.

Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.35% to 122.92 and with USD/CHF gaining 0.40% to 0.9402.

The Australian dollar was steady, with AUD/USD at 0.7703, while NZD/USD edged up 0.10% to 0.6773, off Tuesday's five-year lows of 0.6744.

USD/CAD added 0.22% to trade at 1.2520.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% at 95.99.

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