THE Australian dollar was higher as markets welcomed news that the pro-austerity New Democracy party had eked out an election victory in Greece, reducing the likelihood of a Greek exit from the eurozone.
Still, policymakers warned there was a long way to go before the political and economic uncertainty in Europe was resolved, amid fears a new government in Athens could be short-lived.
At the close, the Australian dollar was at $US1.0114, up US0.98c, and at Y=80.08, from Y=78.98.
Sydney-based Deutsche Bank currency strategist John Horner underscored that while Sunday's election result helped to alleviate the near-term risks, "the medium-term questions remain very much in place".
Mr Horner said there were still "many question marks over Greece's ability to adhere to the (European Union bailout) package it has signed up for and the very real economic weakness that its economy is facing".
