NEW YORK (CNNMoney.com) -- The dollar was mixed Tuesday after Greece successfully sold $2.1 billion in sovereign debt.
What prices are doing: The dollar was unchanged against the euro at $1.3586. It fell 0.3% versus the U.K. pound to $1.5421. Against the Japanese yen, the dollar was down 0.3% to ¥93.
What's moving the market: The euro rallied after an auction of Greek treasury bills received strong demand. But the advance faded as investors considered the high interest rate Athens will have to pay on its debts.
Concerns about a possible default by Greece were tempered Monday after European Union policy makers announced over the weekend an additional $40 billion in low-cost loans for the debt-stricken nation. The International Monetary Fund agreed to kick in $13.5 billion.
Meanwhile, Chinese President Hu Jintao reportedly told President Barack Obama at a meeting to discuss nuclear issues that China will determine its currency policies based on domestic needs, not international pressure.
Hu also said allowing the Chinese currency, the yuan, to appreciate against the dollar will not solve trade imbalances, according to published reports.
The mixed activity came as investors awaited profit and sales reports from a slew of major U.S. corporations.
Aluminum producer Alcoa (AA, Fortune 500) started the first-quarter reporting period late Monday when it posted earnings that met expectations, while revenue fell short.
Chip leader Intel (INTC, Fortune 500) reports results after the close. The Dow component is expected to have earned 38 cents per share after earning 11 cents per share a year ago.
Overall, first-quarter earnings for the S&P 500 are forecast to jump nearly 37%, when compared with last year's abysmal first quarter, according to Thomson Reuters. Revenue figures should also be up a rosy 10% from a year earlier.
Also in focus, the U.S. trade balance for February rose 7.4% to $39.7 billion.
What analysts are saying: Despite the EU rescue package and successful debt sale, the outlook for Greece and other troubled European economies is bleak, said Carl Weinberg, chief economist at High Frequency Economics.
"Investor euphoria over the rescue package for Greece will last only as long as the bridge financing lasts," Weinberg wrote in a research report.
But given the high interest rates investors are demanding for Greek debt, it's not likely that Athens will be able to dig itself out of debt any time soon, he said.
At the same time, there are other European Union members -- Portugal, Italy, Ireland and Spain -- that may end up requiring substantial bailouts. The five nations in trouble -- including Greece -- are collectively called the "PIIGS"
"Euro bulls today may find that they have to reverse course as people start pondering how to extract hundreds of billions of euros of bridge financing for the other PIIGS without scotching the entire Euroland Economy," said Weinberg.
