Euro down as investors wary of Greek debt deal

Published: 23 Jun at 7 AM Tags: Euro, Dollar,

Solid housing data from the US has helped strengthen the dollar as the euro slips. The single currency has fallen as investors remain cautious about a debt deal for Greece. Although many are optimistic that an agreement will eventually be reached, poor growth in the eurozone is weighing heavily on the euro.

On Monday ministers in the eurozone welcomed fresh proposals from Athens to avoid default. Greece is due to make a repayment to the International Monetary Fund at the end of the month. However, Christine Lagarde, IMF Managing Director, and Angela Merkal, the German chancellor, both agreed that there was still a great deal of work to be done.

The euro is down 0.6 per cent to $1.1268. Positive economic data coming out of the US helped the dollar index climb 0.5 per cent to 94.753. The greenback is also up 0.2 per cent against its Japanese rival at 123.65 yen.

The dollar is doing well against the commodity currencies even though Chinese manufacturing appears to be improving.

The Australian dollar is down 0.3 per cent at $0.7704. The New Zealand dollar has fallen to $0.6845, the lowest the currency has been in five years. Pressure has been on the Kiwi since the Reserve Bank of New Zealand made a surprise interest rate cut earlier in the month.