Dollar drops on soothing G8 comments
The dollar fell against major world currencies in Asian trading on Monday after leaders at a Group of Eight summit voiced commitment to preserving the eurozone by keeping Greece in the currency bloc.
In Asian trading on Monday, EUR/USD was trading up 0.25% at 1.2811.
A weekend G8 meeting saw the leaders of the world's wealthiest nations express support for keeping Greece in the eurozone.
Comments that debt-ridden Greece and other European nations can be restored to health not through austerity measures alone but with a balance of belt-tightening measures and policies that drive growth sent the dollar falling and appetite for the euro and other higher-yielding assets rising.
Widespread anger over the pain that austerity measures have inflicted on Greece have boosted support for leftist politicians in Greece who oppose bailout terms.
Elections are slated for June 17, and a recent failure to appoint a ruling coalition has fueled fears that Greece would rather risk exiting the euro by unilaterally scrapping austerity measures that would cut off the flow of bailout money.
German officials have said Greece should stay the course of austerity, insisting pain now will lead to better days down the road.
The dollar strengthened against the yen, however, on talk the Bank of Japan will roll out fresh stimulus measures to weaken the currency and jolt the country's export sector.
The greenback was lower against the pound, with GBP/USD up 0.13% and trading at 1.5836.
The U.S. currency was up against the yen, with USD/JPY trading up 0.15% at 79.14, and down against the Swiss franc, with USD/CHF trading down 0.23% at 0.9376.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.30% at 1.0190, AUD/USD up 0.25% at 0.9868 and NZD/USD up 0.51% at 0.7598.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% at 81.09.
Greek concerns will move the dollar Monday although investors will keep an eye head towards Tuesday's homes sales data.
In Asian trading on Monday, EUR/USD was trading up 0.25% at 1.2811.
A weekend G8 meeting saw the leaders of the world's wealthiest nations express support for keeping Greece in the eurozone.
Comments that debt-ridden Greece and other European nations can be restored to health not through austerity measures alone but with a balance of belt-tightening measures and policies that drive growth sent the dollar falling and appetite for the euro and other higher-yielding assets rising.
Widespread anger over the pain that austerity measures have inflicted on Greece have boosted support for leftist politicians in Greece who oppose bailout terms.
Elections are slated for June 17, and a recent failure to appoint a ruling coalition has fueled fears that Greece would rather risk exiting the euro by unilaterally scrapping austerity measures that would cut off the flow of bailout money.
German officials have said Greece should stay the course of austerity, insisting pain now will lead to better days down the road.
The dollar strengthened against the yen, however, on talk the Bank of Japan will roll out fresh stimulus measures to weaken the currency and jolt the country's export sector.
The greenback was lower against the pound, with GBP/USD up 0.13% and trading at 1.5836.
The U.S. currency was up against the yen, with USD/JPY trading up 0.15% at 79.14, and down against the Swiss franc, with USD/CHF trading down 0.23% at 0.9376.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.30% at 1.0190, AUD/USD up 0.25% at 0.9868 and NZD/USD up 0.51% at 0.7598.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% at 81.09.
Greek concerns will move the dollar Monday although investors will keep an eye head towards Tuesday's homes sales data.
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