Investing.com - The euro weakened against the other major currencies on Tuesday as initial optimism over a Greek debt deal gave way to a more cautious mood, while upbeat U.S. housing data boosted the dollar.
EUR/USD was down 0.8% to 1.1249 from Monday’s highs of 1.1409.
Euro zone finance ministers failed to reach agreement over Greece’s bailout at an emergency meeting on Monday, but indicated that a final deal could be made later this week.
Eurogroup head Jeroen Dijsselbloem said new reform proposals from the Greek government were “broad and comprehensive,” and a good basis to restart stalled negotiations.
But German Chancellor Angela Merkel and International Monetary Fund head Christine Lagarde both warned that there was still a lot of work to be done.
Greece’s existing bailout is set to expire at the end of this month, when it must also repay €1.6 billion to the IMF.
A default by Greece could trigger the country’s exit from the euro zone.
The euro was lower against the yen and the pound, with EUR/JPY down 0.48% to 139.23 and EUR/GBP sliding 0.53% to 0.71.28.
The dollar pushed higher against the yen, with USD/JPY advancing 0.26% to 123.70.
Demand for the dollar continued to be underpinned after data on Monday showed that U.S. existing home sales jumped to a five-and-a-half year high in May.
The National Association of Realtors said home resales increased 5.1% to an annual rate of 5.35 million units, the highest level since November 2009.
Economists had forecast a more modest 4.4% rise.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.55% to 95.04 from Monday’s lows of 93.99.