Investing.com - The dollar edged higher against the other major currencies on Wednesday, as concerns over a potential Greek exit from the euro zone continued to dominate market attention.
EUR/USD slipped 0.13% to 1.1305 as investors remained cautious following reports the European Commission could propose a six-month extension to Greece’s existing bailout program at an emergency meeting of the euro group of finance ministers, due to take place later in the day.
Athens is expected to ask for a bridge loan to cover its funding needs until September, and to also propose new economic reforms to replace some of the harshest austerity conditions attached to its bailout.
However, German Finance Minister Wolfgang Schaeuble dampened hopes Wednesday morning, by saying there are no plans to discuss a new agreement.
Greek Prime Minister Alexis Tsipras has said he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension, fuelling fears over Greece’s future in the euro zone.
The pound rose against the dollar, with GBP/USD up 0.25% to 1.5293, while USD/CHF held steady at 1.5291.
Elsewhere, USD/JPY rose 0.37% to trade at 119.87.
The yen weakened slightly after Bank of Japan Governor Haruhiko Kuroda said the Group of 20 nations didn't criticize his bank's monetary easing program, indicating confidence to continue on the path of monetary stimulus.
The Australian and New Zealand dollars were lower, with AUD/USD declining 0.50% to 0.7731 and NZD/USD easing 0.09% to 0.7394.
The Westpac Banking Corporation earlier reported that Australian consumer sentiment rose 8.0% this month, after an increase of 2.4% in January.
A separate report showed that home loans in Australia climbed 2.7% in December, beating expectations for a 2.0% rise. November's figure was revised to a 0.4% downtick from a previously estimated 0.7% fall.
Meanwhile, the Canadian dollar slid lower, with USD/CAD up 0.31% to 1.2626.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% to 94.97.