Euro Relents Versus Dollar As Greece Weighs
The euro paused versus the dollar Monday morning, staying near a monthly peak amid concerns the U.S. economic recovery has stalled.
The Greek debt debacle remains unresolved, putting a cap on the euro's recent gains.
While European officials and the International Monetary Fund have downplayed the threat of a Greek default, markets remain unconvinced that it can be avoided.
Greece has promised severe austerity cuts in return for financial aid.
The euro touched a monthly peak of $1.4657 before leveling off near $1.4620.
Solid gains took the euro to a new monthly high of GBP 0.8930. About five weeks ago the euro touched above 0.90 -- hitting its highest since early 2010.
Choppy dealing left the euro at CHF 1.2230 versus the Swiss franc - not far from last weeks's record low CHF1.2050.
In economic news, Euro area producer price inflation eased slightly in April, data from Eurostat showed. The total industry producer prices on the domestic market excluding construction rose 6.7 percent year-on-year in April, slower than March's revised 6.8 percent increase.
Investor confidence in eurozone declined for the third consecutive month in June. The Sentix investor sentiment index, an indicator of confidence around 900 investors, decreased to 3.5 from 10.9 points in May. Economists were expecting a reading of 9.2 points.
Focus will turn back the U.S. later today. At 3:45 pm ET, Federal Reserve Chairman Ben Bernanke is scheduled to speak to the International Monetary Conference in Atlanta. Additionally, Dallas Federal Reserve President Richard Fisher will speak at a Market News International seminar in New York at 5:30 pm ET.
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