Market info

Dollar loses steam on Greece hopes

02 Mar  - Fundamental 

The dollar reversed gains Monday, ending lower as the euro rose on hopes that the European Union will help bail out debt-choked Greece.

What prices are doing: The dollar lost 0.4% against the euro at $1.3615 and fell 0.4% against the yen at ¥89.80. The greenback climbed 0.2% against the British pound to $1.4969.

What's moving the market: With little U.S. economic news released Tuesday, investors continued to focus on Greece's debt crisis.

The euro rose off lows on reports that Greek officials would meet Wednesday to make decisions about the economy, pushing the greenback lower.

Traders also digested interest rate decisions from two central banks. The Canadian dollar soared after the Bank of Canada, which had previously pledged to hold interest rates at 0.25% until June, said it could raise rates sooner if necessary.

The greenback traded lower against the Australian dollar after the Reserve Bank of Australia lifted interest rates as expected.

With the European Central Bank and the Bank of England set to make announcements on their monetary policies Thursday, investors will continue to react to central banks' decisions before shifting their attention to the U.S. February jobs report due Friday.

What analysts are saying: «Traders are focusing on foreign central bank decisions and the risks and events around the world,» said Kathy Lien, director of currency research at Global Forex Trading.

She added that investors are concerned whether a bailout will just shift the debt burden from struggling nations like Greece to larger countries such as Germany and France and slow their growth.

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