U.S. Dollar Rise On Concerns Over Greece

U.S. Dollar Rise On Concerns Over Greece



The U.S. dollar advanced against other major currencies ahead of the European session on Friday as traders bought safe-haven greenback on skepticism concerning the Greek debt deal.
Eurozone Finance Ministers refused to approve a second bailout package for Greece until the cash-strapped nation implements an austerity plan. Eurogroup chairman Jean-Claude Juncker made it clear after the meeting in Brussels that there will be "no disbursement before implementation (of the new set of conditions)."
Demanding "strong political assurances" from the leaders of the coalition parties on the implementation of the program, Juncker, who is also Luxembourg's Prime Minister, said that the Greek parliament must ratify the package on Sunday and urged the country to find a further EUR325 million in savings to cover budget shortfall for 2012.
According to EU Economic and Monetary Affairs Commissioner Olli Rehn, the deal on private sector involvement is "practically finalized" and is likely to be formally approved as part of the overall package next week
The dollar is now worth 1.3250 per euro and 0.9137 against the franc, compared to Thursday's close of 1.3286 and 0.9120, respectively. The next upside target level for the dollar is seen at 1.324 against the euro and 0.915 against the franc.
Against the pound, the dollar is trading at a 4-day high of 1.5770 with 1.575 seen as the next upside target level. At yesterday's close, the pound-dollar pair was quoted at 1.5818.
The U.S. dollar that closed Thursday's trading at 0.9950 against the Canadian dollar is presently worth 0.9978. If the greenback-loonie pair gains further, it may likely target the 0.999 level.
The U.S. dollar is trading at a 4-day high of 1.0690 against the Australian dollar and the next upside target level for the greenback is seen at 1.060. The aussie-greenback pair was quoted at 1.0788 at Thursday's close.
The Aussie declined as the Reserve Bank of Australia lowered its inflation and growth forecasts for the first half of 2012 due to uncertainty about Europe's debt crisis.
In its monetary policy statement, the Reserve Bank of Australia said that it expects underlying inflation to be about 2.25 percent for the year to June, down 0.25 percent from an earlier forecast. The GDP growth forecast in the year to June has been lowered to 3.5 percent from 4 percent.
Against the New Zealand dollar, the U.S. dollar is trading at a 9-day high of 0.8282 with 0.825 seen as the next upside target level. The kiwi-greenback pair ended yesterday's trading at 0.8343.
The dollar is now worth 77.70 against the yen, compared to a fresh 2-week high of 77.76 hit in early Asian deals. If the dollar-yen pair advances further, it may likely target the 78.3 level. The pair closed Thursday's New York session at 77.68.
Swiss CPI for January and the U.K. PPI for January are slated for release in the coming hours.
Across the Atlantic, December trade data from the U.S. and Canada, preliminary report of the Reuters/University of Michigan's consumer sentiment survey for February are expected in the New York morning session.


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