Investing.com - The U.S. dollar remained higher against its major counterparts on Monday, as investors awaited the outcome of negotiations on a Greek debt swap deal and eyed a European Union summit later in the day.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD dropping 0.74% to hit 1.3121.
The euro weakened as investors took profits after the currency rallied to six-week highs, while delays in negotiations between Greece and its private creditors on a debt swap deal also weighed on risk appetite.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
Investors were also cautious ahead of an EU summit in Brussels later in the day. Ministers were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and sign off on a EUR500 billion permanent rescue fund to be set up this year.
The single currency found mild support earlier, after Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than in similar auctions one month ago.
But the cost of insuring Portuguese government debt against default surged to fresh euro-era highs earlier, amid renewed fears the country may need a second international bailout.
The greenback was also up against the pound, with GBP/USD shedding 0.20% to hit 1.5696.
The pound continued to be weighed by speculation that the Bank of England may implement fresh quantitative easing measures, possibly as soon as next month, in order to shore up growth in the U.K. economy.
The greenback was almost unchanged against the yen but advanced against the Swiss franc, with USD/JPY dipping 0.05% to hit 76.66 and USD/CHF climbing 0.66% to hit 0.9188.
In addition, the greenback was up against its Canadian, Australian and New Zealand cousins, with USD/CAD rising 0.35% to hit 1.0053, AUD/USD tumbling 1% to hit 1.0550 and NZD/USD dropping 0.85% to hit 0.8176.
The Australian dollar came under pressure earlier after the country’s four largest banks were placed on rating watch negative by Fitch Ratings, which said the lenders continue to have a weaker funding profile than similarly-rated peers.
Fitch added that any ratings downgrades are likely to be limited to a single notch.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.56% to hit 79.39.
Later in the day, the U.S. was to publish government data on personal spending and the consumer price index.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD dropping 0.74% to hit 1.3121.
The euro weakened as investors took profits after the currency rallied to six-week highs, while delays in negotiations between Greece and its private creditors on a debt swap deal also weighed on risk appetite.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
Investors were also cautious ahead of an EU summit in Brussels later in the day. Ministers were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and sign off on a EUR500 billion permanent rescue fund to be set up this year.
The single currency found mild support earlier, after Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than in similar auctions one month ago.
But the cost of insuring Portuguese government debt against default surged to fresh euro-era highs earlier, amid renewed fears the country may need a second international bailout.
The greenback was also up against the pound, with GBP/USD shedding 0.20% to hit 1.5696.
The pound continued to be weighed by speculation that the Bank of England may implement fresh quantitative easing measures, possibly as soon as next month, in order to shore up growth in the U.K. economy.
The greenback was almost unchanged against the yen but advanced against the Swiss franc, with USD/JPY dipping 0.05% to hit 76.66 and USD/CHF climbing 0.66% to hit 0.9188.
In addition, the greenback was up against its Canadian, Australian and New Zealand cousins, with USD/CAD rising 0.35% to hit 1.0053, AUD/USD tumbling 1% to hit 1.0550 and NZD/USD dropping 0.85% to hit 0.8176.
The Australian dollar came under pressure earlier after the country’s four largest banks were placed on rating watch negative by Fitch Ratings, which said the lenders continue to have a weaker funding profile than similarly-rated peers.
Fitch added that any ratings downgrades are likely to be limited to a single notch.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.56% to hit 79.39.
Later in the day, the U.S. was to publish government data on personal spending and the consumer price index.