Investing.com - The euro dipped against the dollar on Wednesday following strong gains in the previous session on the back of hopes for compromise on Greek debt, and after a rally in oil prices boosted commodity exposed currencies.
EUR/USD slid 0.13% to 1.1463, not far from Tuesday’s highs of 1.1533.
Investor confidence was boosted Tuesday after the Greek government outlined its plans to renegotiate the terms of its €140 billion bailout, retreating from election pledges to demand a debt write-down.
The move eased concerns over a conflict with the country’s creditors which could lead to its exit from the euro zone.
Greek Finance Minister Yanis Varoufakis has proposed debt swaps to ease the country’s burden debt, under which creditors would swap outstanding debt for new growth-linked bonds. This could help to reduce the risk of losses on privately held bonds.
Market sentiment was also boosted as oil prices continued to recover, supporting broader gains in the commodities market.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up to 93.86, holding above the previous sessions lows of 93.39. The index fell 0.9% on Tuesday, the largest one day decline since October 2013.
USD/JPY was almost unchanged at 117.53, recovering from Tuesday’s low of 116.87.