By Michael Kitchen, MarketWatch LOS ANGELES (MarketWatch) — News of a deal to clear the way for Greece’s next aid payment sent the euro higher Tuesday, with the common currency briefly topping the psychologically-important $1.30 handle, while the U.S. dollar lost ground. The euro EURUSD +0.17% changed hands for $1.2987 Tuesday afternoon in East Asia, up from $1.2961 late Monday in North America. The advance came after Greece’s creditors reached a long-awaited deal to pave the way for Athens to receive fresh financial aid. Read: Euro zone, IMF agree on Greece debt deal. “While trading in the euro was rather pedestrian during the European/U.S. sessions, it has been much more lively in early Asian trade today with news breaking that [European] finance ministers and the International Monetary Fund have struck a deal that will pave the way for Greece to receive a series of emergency loans,� said IG market analyst Cameron Peacock. The dollar, meanwhile, moved in the other direction. The ICE dollar index DXY -.00% , which measures the greenback against a basket of six other currencies, slipped to 80.114 from 80.227 late Monday. The dollar’s loss extended a downward trend since the middle of last week, when the index sat well above 81. Crédit Agricole strategists said the greenback’s decline had “almost wiped out half its rally since Oct. 17� and looked likely to continue in the short term. “Most commentators are ascribing [dollar] weakness to the improving risk appetite, but ... the reality is that there is probably a bout of profit-taking rather than any major shift in [dollar] sentiment,� the Crédit Agricole strategists said. Among other major currency pairs, the British pound GBPUSD +0.12% rose to $1.6034 from $1.6015 late Monday, while the yen moved slightly higher in choppy trade, with the dollar USDJPY +0.25% inching down to ¥82.15 from ¥82.17. Michael Kitchen is Asia editor for MarketWatch and is based in Los Angeles.

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