Investing.com - The U.S. dollar remained higher against almost all of its major counterparts on Monday, but the euro found some support amid fresh hopes that an agreement on a debt swap deal for Greece is imminent.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.82% to hit 1.3111.
The euro found support after officials from the euro zone and International Monetary Fund said an initial agreement on a new bailout package for Greece could be reached as early as this week.
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.
But investors remained jittery ahead of the outcome of an EU summit in Brussels. Ministers were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.
Earlier in the day, Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than in similar auctions one month ago.
The auction was a key test of Italy’s ability to raise funds on the international market, coming after a two notch downgrade of the country’s sovereign debt rating by Fitch Ratings on Friday.
But the yields on Portugal's 10-year government bonds rose above 15% on Monday, amid renewed fears the country may need a second international bailout.
The greenback was also up against the pound, with GBP/USD sliding 0.25% to hit 1.5687.
Elsewhere, the greenback was lower against the yen but advanced against the Swiss franc, with USD/JPY shedding 0.44% to hit 76.34 and USD/CHF climbing 0.63% to hit 0.9182.
The greenback was remained broadly higher against its Canadian, Australian and New Zealand cousins, with USD/CAD rising 0.28% to hit 1.0045, AUD/USD dropping 0.88% to hit 1.0563 and NZD/USD falling 0.87% to hit 0.8174.
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, was up 0.60% to hit 79.42.
In the U.S., official data showed that personal spending was flat in December, confounding expectations for a 0.2% gain.
The weak data underlined concerns over the outlook for the U.S. recovery, after a report on Friday showed that the U.S. economy expanded slightly less-than-expected in the fourth quarter.
During U.S. morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.82% to hit 1.3111.
The euro found support after officials from the euro zone and International Monetary Fund said an initial agreement on a new bailout package for Greece could be reached as early as this week.
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.
But investors remained jittery ahead of the outcome of an EU summit in Brussels. Ministers were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.
Earlier in the day, Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than in similar auctions one month ago.
The auction was a key test of Italy’s ability to raise funds on the international market, coming after a two notch downgrade of the country’s sovereign debt rating by Fitch Ratings on Friday.
But the yields on Portugal's 10-year government bonds rose above 15% on Monday, amid renewed fears the country may need a second international bailout.
The greenback was also up against the pound, with GBP/USD sliding 0.25% to hit 1.5687.
Elsewhere, the greenback was lower against the yen but advanced against the Swiss franc, with USD/JPY shedding 0.44% to hit 76.34 and USD/CHF climbing 0.63% to hit 0.9182.
The greenback was remained broadly higher against its Canadian, Australian and New Zealand cousins, with USD/CAD rising 0.28% to hit 1.0045, AUD/USD dropping 0.88% to hit 1.0563 and NZD/USD falling 0.87% to hit 0.8174.
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, was up 0.60% to hit 79.42.
In the U.S., official data showed that personal spending was flat in December, confounding expectations for a 0.2% gain.
The weak data underlined concerns over the outlook for the U.S. recovery, after a report on Friday showed that the U.S. economy expanded slightly less-than-expected in the fourth quarter.