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U.S dollar mixed on Greek uncertainty

Published 02/21/2012, 02:42 PM
Updated 02/21/2012, 02:43 PM
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Investing.com - The U.S. dollar was mixed against its major counterparts Tuesday, as uncertainty over the approved Greek bailout plan being  sufficient to avoid future default weighed on market sentiment

During U.S. afternoon trade, the dollar eased lower against the euro, with EUR/USD rising 0.02% to hit 1.3244.

The single currency was bolstered after the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020, were released.

 In addition, private sector creditors agreed to accept a write-down on their bonds of more than 53%, which is projected to slash Greece's debt by EUR107 billion.

However,  the initial optimismt of the deal faded amid concerns over Greece’s ability to implement the terms of the package and the country’s deteriorating economic situation. 

Meanwhile, the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said in its latest report on Greece's debt sustainability that "additional debt relief" will be required in the future.

The greenback was higher against the pound, with GBP/USD giving back 0.40% to hit 1.5787.

Official data indicated that U.K. public finances posted their largest monthly surplus since January 2008 last month.

Public sector net borrowing or the difference in value between public spending and income moved to a surplus of GBP10.7 billion in January, from a deficit of GBP11.1 billion the previous month.

The U.S. dollar was slightly higher against the yen and the Swiss franc, with USD/JPY adding 0.12% to hit 79.72 and USD/CHF gaining 0.02% to hit 0.9118.

Earlier in the day, government data showed that Switzerland's trade surplus declined unexpectedly in January, falling to CHF1.55 billion from CHF2 billion the previous month as exports fell 3.4% on the month.

Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.20% to hit 0.9956,AUD/USD dropping 0.65% to hit 1.0685 and NZD/USD giving back 0.63% to hit 0.8346.

In Canada, official data showed that retail sales in fell 0.2% in December, broadly in line with expectations.

A separate report, showing that Canadian wholesale sales rose by 0.9% December, beating expectations for a 0.5% gain, offset the impact of the retail sales data.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased higher by 0.01% to hit 79.11.

Also Tuesday, Germany’s Finance Minister Wolfgang Schaeuble said that the IMF could contribute as much as EUR23 billion to the Greek rescue package, but added that a final decision would be made at a meeting next week.




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