Investing.com - The euro fell to the lowest level in two weeks against the broadly stronger dollar on Tuesday amid uncertainty over whether Greece will be able to reach a bailout agreement in the coming days, while the dollar rallied boosted by higher Treasury yields and upbeat U.S. data.
EUR/USD hit lows of 1.1136, the weakest since June 8 and was last at 1.1184, off 1.37% for the day.
The euro remained under pressure after initial optimism that a Greek debt deal will be reached this week gave way to a more cautious mood.
Euro zone finance ministers were to hold fresh talks on a deal to avert a default on Thursday, leaving just 48 hours for a detailed agreement to be finalized.
The new reform proposals from the Greek government prompted sharp criticism at home on Tuesday, with government and opposition MPs criticizing the plan.
The euro was sharply lower against the yen and the pound, with EUR/JPY down 0.99% to 138.51 and EUR/GBP dropping 0.8% to 0.7108.
The dollar was boosted by higher U.S. Treasury yields, as investors focused once again on the prospect of higher interest rates this year.
Federal Reserve Governor Jerome Powell said Tuesday there was a 50-50 chance of a rate hike at the Fed's September meeting and added that he envisioned a second hike in December.
Meanwhile, U.S. data showed that new home sales jumped to a more than seven-year high in May, bolstering the outlook for the economy.
The Commerce Department reported that sales of new homes rose 2.2% to an annual rate of 546,000 units, the highest level since February 2008, compared to expectations for a gain of 1.5% to 525,000.
A separate report showing a rebound in business investment plans also boosted the greenback.
Non-defense capital goods orders, excluding aircraft, a closely watched gauge of business spending plans, rose 0.4% in May, the Commerce Department reported.
Total durable goods orders, which include transportation items, fell 1.8% last month as the effects of the strong dollar continued to weigh.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 95.48, up 1.03% for the day.