LONDON (MarketWatch) -- The euro lost momentum Tuesday in the wake of Greece's successful sale of short-term debt, the first test for credit markets since euro-zone leaders detailed plans to shore up the debt-strapped nation. The dollar index (DXY 80.51, -0.05, -0.06%) , which measures the greenback against a trade-weighted basket of six major currencies, was at 80.525, off slightly from 80.574. Despite Greece's well-received auction of 26- and 52-week Treasury bills, the euro appeared to stall on the heels of a strong three-day rebound that had seen the single currency bounce from a low last week below $1.33. Read about Greece's debt auction. The euro (CUR_EURUSD 1.3611, +0.0024, +0.1767%) changed hands at $1.3591 in recent action, virtually unchanged from North American trading late Monday. While the decision to put meat on the bones of the euro-zone's standby aid plans and the strong demand for Greek debt are positive signs, Credit Agricole currency strategist Daragh Maher said traders remain poised to sell the euro into rallies amid a combination of worries -- Greece's longer-term fiscal challenges as well as expectations for fiscal tightening across the 16-nation euro zone and for weak economic growth across the region. So whatever news provides some relief for the euro, "the perception will be in the market that it just gives you a better level to sell it," Maher said. Meanwhile, the British pound rose 0.4% to change hands at $1.5422. The British trade deficit in goods for February narrowed to 6.2 billion pounds, data showed. This compared favorably against expectations for a figure of around 7.1 billion pounds. Exports were boosted by recent weakness in sterling, the data indicated. Against the Japanese currency, the dollar (CUR_USDYEN 92.6900, -0.5000, -0.5365%) bought 93.03 yen, compared with 93.27 yen late Monday. At a parliamentary session Tuesday, Bank of Japan Governor Masaaki Shirakawa said "the Japanese economy has been picking up, and fears about a so-called double-dip recession have been fading," according to Dow Jones Newswires. He also said that "as for prices, the pace of falls in the on-year consumer price index is expected to slow with demand and supply conditions improving." But a draft policy proposal by a group of lawmakers from Japan's ruling party called on the government and the Bank of Japan to use a range of measures to combat deflation. Dow Jones Newswires also said the proposals included a call for the government to guide the yen to "appropriate" levels near 120 to the dollar. The news report quoted a politician close to the group leaders as saying the yen proposal was controversial within the group and would likely see drastic changes, however.

Source