FX:Forex - Dollar lower vs. rivals, Greek resolution eyed
Forexpros - The U.S. dollar was higher against its major counterparts on Wednesday, as markets eyed the outcome of prolonged debt talks in Greece with hopes the country will manage to avoid a default.
During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.05% to hit 1.3268.
The euro was boosted by indications that Greek political leaders were moving closer to an agreement on a debt swap deal with private creditors with the aim of reducing future borrowing costs.
Greece needs to finalize a debt restructuring deal by early March as part of an agreement to receive a EUR130 billion bailout package.
Earlier Wednesday, official data showed that German exports fell at their fastest rate in nearly three years in December, narrowing the trade surplus to EUR13.9 billion from a revised EUR14.9 billion the previous month.
The data sparked concerns that the official fourth quarter estimate for an economic contraction of 0.25% may have to be revised down.
The greenback was also lower against the pound, with GBP/USD rising 0.10% to hit 1.5912.
Sentiment on the greenback was hit after Federal Reserve Chairman Ben Bernanke indicated that the central bank would keep borrowing costs close to zero for another two years even after data last week showing the U.S. unemployment rate unexpectedly fell to a three-year low.
In testimony to the Senate Budget Committee in Washington on Tuesday Bernanke said the decline in the jobless rate understated weakness in the labor market.
The greenback was down against the yen and steady against the Swiss franc, with USD/JPY gaining 0.38% to hit 77.06 and USD/CHF rising 0.16% lower to hit 0.9133.
Official data showed earlier that the unemployment rate in Switzerland held steady at 3.1% in January, in line with expectations.
In addition, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.01% to hit 0.9944, AUD/USD advancing 0.25% to hit 1.0834 and NZD/USD rising 0.31% to hit 0.8383.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched 0.01% lower to hit 78.59.
Later in the day, the U.S. was to publish a government report on crude oil stockpiles.
