Dollar Edges Lower As Swiss Franc Dominates
The dollar was generally weaker versus other majors in quiet dealing Monday, with most of its modest losses coming in the early hours.
A lack of economic catalysts kept the dollar from adding to its recent gains versus the euro, as traders preferred the safe haven Swiss franc in the absence of clarification on Greece’s debt crisis.
The dollar was steady near $1.4365 against the euro after briefly slipping to $1.44. The dollar gained on the euro last week amid concerns that Greece will be forced to default unless a rescue deal is reached in the coming days.
Over the weekend, Eurogroup chairman Jean-Claude Juncker said that Greece requires a “soft, voluntary restructuring” of its sovereign debt.
The euro will remain stable even in the case of a default by Greece, European Central Bank governing council member Jens Weidmann said Monday.
The dollar came under heavy pressure versus the Swiss franc, slipping to CHF 0.8360. With the loss, the dollar was near this month’s record low of 0.8326. The franc hit a new record peak versus the euro.
Early losses dropped the dollar to Y80.15 versus the yen, not for from last week’s 2-month low of Y79.70.
The health of the U.S. economy will be focus in the coming days, as the government releases official data on inflation and retail sales for the month of May.
Additionally, the Commerce Department’s housing starts report and the Reuters/University of Michigan’s preliminary consumer sentiment index for June are due out over the course of the week.
