LONDON—The euro was higher Monday against the dollar in thin holiday trade after Greek economic data proved better than expected and Italy's treasury-bill sale passed smoothly.
In early New York trade, the common currency was at $1.2344 compared with $1.2290 late Friday. The dollar traded at ¥78.32 compared with ¥78.27, while the euro was at ¥96.678 compared with ¥96.22. The pound bought $1.57 compared with $1.5688.
The euro rose back above $1.23 against the buck in European hours and made gains against the pound and Swedish krona, boosted in part by news Italy successfully raised the €8 billion ($9.83 billion) planned, albeit at a slightly higher cost. Data showing Greek gross domestic product contracted 6.2% in the second quarter compared with a year earlier, improving slightly on the 6.5% decline seen in the first three months of the year, also helped support sentiment, with Spanish and Italian government bond yields easing after a poor start.
The yen and commodity-linked currencies of Australia and New Zealand retraced losses made in Asian hours against the dollar after weaker-than-expected Japanese economic data, while the pound pushed back to $1.57 against the buck to its strongest level so far this month.
"Currency markets have been spooked by that, but if it wasn't for expectation we are going to get further monetary stimulus from the Federal Reserve and from potentially the European Central Bank, markets would be much weaker than they are today," Mr. Myers said.
Preliminary data released overnight showed that Japan's economy grew an annualized 1.4% in the April to June quarter, compared with expectations for a 2.7% increase. This is the latest sign of a slowdown in Asian economies, after China posted disappointing industrial and trade data last week.
Looking ahead, there are no major data releases due on either side of the Atlantic, but the news flow will get busier as the week goes on, with U.S. retail sales, inflation and housing data all scheduled for release. Tuesday's preliminary reading of German, French and euro-zone GDP will also be closely watched.
Greece is another focus as it steps up its Treasury bill issuance Tuesday, offering an unusually large amount so it can meet looming redemptions and fund its cash needs until it secures further aid from its international creditors.
The Wall Street Journal Dollar Index, which tracks the U.S. dollar against a basket of major currencies, was at 71.49 from 71.62.
