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Forex - Euro, dollar slip lower against yen

Published 06/25/2015, 02:51 AM
© Reuters. Euro, dollar slip lower against firmer yen
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Investing.com - The euro and the dollar slipped lower against the traditional safe-haven yen on Thursday as investors nervously eyed developments in Greece’s debt talks and awaited data on U.S. consumer spending later in the day.

EUR/USD eased 0.15% to 1.1186, from 1.1203 late Wednesday.

The single currency remained on the defensive ahead of the looming deadline for Greece to repay €1.6 billion to the International Monetary Fund on June 30.

If Greece misses the payment it risks going into default, which could trigger the country’s exit from the euro area.

Negotiations faltered on Wednesday after Greece’s creditors rejected some of its latest proposed reforms and presented the government with counter proposals for a deal to unlock bailout funds.

The euro was lower against the yen, with EUR/JPY sliding 0.18% to 138.50 from 138.76 late Wednesday.

The dollar also edged lower against the yen, with USD/JPY touching lows of 123.56 before pulling back to 123.76.

Market participants were looking ahead to a report on U.S. consumer spending due out later in the day amid ongoing speculation over prospects for higher interest rates.

Data on Wednesday showed that a contraction in U.S. first quarter growth was not a severe as initially estimated.

The Commerce Department said the economy contracted at an annual rate of 0.2% in the three months to March, lower than the initial estimate for a 0.7% contraction reported last month.

The upward revision to was due in large part to stronger consumer spending, which was revised up to 2.1% from the initial estimate of 1.8%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up to 95.53.

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