Forex - Dollar mixed on hopes for Greek debt deal

Published 02/17/2012, 03:02 PM
Updated 02/17/2012, 03:10 PM
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Investing.com - The dollar was mixed against the world's major currencies Friday, weakened by demand for the euro on hopes Europe was set to bail out debt-stricken Greece, while stronger against the yen on Tokyo's recent commitments to halting the currency's strengthening trend.

European leaders appear increasingly likely to sign off on a EUR130 billion bailout facility for Greece, which sparked a global risk-on trading session that sent the greenback falling against the euro.

In afternoon U.S. trading on Friday, EUR/USD was up 0.18% and trading at 1.3154.

In Europe, hopes were high that the continent's leaders were set to approve a EUR130 billion bailout package for Greece.

While Greece appeared likely to miss a debt target by 2020, the country claims it has agreed to austerity measures demanded by sovereign lenders and feels the bailout money is both deserved and needed.

The euro, however, didn't surge against the greenback as many market participants remained cautious on sentiment that until the money changes hands, optimism will remain somewhat bridled.

Furthermore, Japan has taken measures to halt the yen's strengthening trend.

Earlier in the week, the Bank of Japan announced it was adding JPY10 trillion to an asset-purchase program and set an inflation goal as a move to weaken the yen.

The greenback was up 0.65% against the yen, with USD/JPY trading at 79.44, and down against the Swiss franc, with USD/CHF losing 0.07% and trading at 0.9186.

The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.06% at 0.9961, AUD/USD down 0.31% at 1.0721 and NZD/USD up 0.23% at 0.8350.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.03% at 79.49.

All eyes will focus on Europe over the weekend and on Monday, as hints that Greece will receive its long-awaited aid package will serve as the currency market's main weather vane.

On Monday, the Reserve Bank of Australia will release the minutes of its latest monetary policy meeting.

Monday is a holiday in the U.S.





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