Investing.com - The euro was little changed on Wednesday as tensions over Greece continued while the dollar ticked higher ahead of the Federal Reserve’s upcoming monetary policy statement later in the trading day.
EUR/USD was steady at 1.1247, off Tuesday’s highs of 1.1329.
The euro weakened on Tuesday amid mounting concerns over the approaching deadline for Greece’s repayments to the International Monetary Fund.
Europe wants Greece to make spending cuts worth €2 billion in order to secure a deal that will unlock additional funds before its bailout expires at the end of June and it must repay €1.6 billion to the IMF.
A default by Greece could lead to the country’s exit from the euro area.
But comments by Prime Minister Alexis Tsipras on Tuesday in which he accused the county’s creditors of trying to "humiliate" Greece with more cuts indicated that Athens is sticking to a hard line in negotiations.
The single currency was also hit after data showed that the closely watched ZEW German investor sentiment index deteriorated sharply this month, hit by uncertainty over Greece’s future in the euro zone.
The dollar pushed higher against the yen, with USD/JPY last up 0.18% to 123.58, off Tuesday’s lows of 123.28.
Investors were looking ahead to the Fed’s rate statement later Wednesday for any clear signal about a possible timeline for hiking interest rates, which have remained close to zero since late 2008.
Data on Tuesday showing that the number of building permits issued in the U.S. rose to an almost eight-year high in May added to the view that the economy is regaining momentum after a weak first quarter.
Housing starts fell last month following strong gains in April, but remained at levels consistent with a strengthening housing market.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 95.24, up from Tuesday’s lows of 94.80.