By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The dollar index retreated from 2010 highs in Asian trading hours on Monday as concerns that a Greek exit from the euro zone was imminent eased a fraction.
The ICE dollar index DXY -0.53% , which measures the greenback against a basket of six currencies, traded at 81.976, from 82.416 in late North American trading on Friday, when it reached a level not seen since 2010.
Europe’s ongoing troubles have boosted the greenback — widely regarded as a safe-haven — in recent weeks.
At the same time, the euro EURUSD +0.26% has fallen sharpy against the U.S. dollar recently. The shared currency traded at $1.2595 on Monday, up from $1.2514 in late North American trading on Friday when it hit a 22-month low. Read more on Friday's currency market action.
Mitul Kotecha, head of global foreign exchange strategy at Credit Agricole, pinned the move for both currencies Monday on broad market relief triggered by weekend opinion polls in Greece.
“Greek opinion polls show growing support for pro-bailout parties. While the Greek election is still some weeks off, suggesting that uncertainty will not ease quickly, this news will allay fears of a quick ‘Grexit’” Kotecha said.
Major U.S. markets are closed Monday for Memorial Day.
In other currency market action, the British pound GBPUSD +0.07% reached $1.5704, from $1.5662 in late trading on Friday.
Against the Japanese yen AUDUSD +0.58% , also regarded as a safe-haven asset, the dollar bought 79.38 yen, compared to ¥79.67 in late trading last week.
Sarah Turner is MarketWatch's bureau chief in Sydney.
