Dollar Slides Amid Renewed Hopes For Greece
The dollar was generally weaker on Friday, giving back recent gains versus European rivals amid hopes the German concessions represent a breakthrough on dealing with Greek debt crisis.
After weeks of haggling, German Chancellor Angela Merkel has conceded that participation by private lenders, including the region’s wobbly banks, should be voluntary.
Analysts expect a massive rescue package to be agreed upon in the next week or two, if Athens can remain committed to austerity measures.
Still, analysts say the plan only buys Greece more time, tempering enthusiasm for the euro.
Meanwhile, the dollar remains unattractive due to lingering U.S. economic weakness and expectations for the Federal Reserve to keep rates near zero in 2011.
The buck come down from a 3-week high of $1.4072 versus the euro, falling all the way to $1.43.
A weekly low of Y80.05 was seen against the yen, while buck eased to $1.6180 from $1.6080 against the sterling.
In economic news from the U.S., consumer sentiment worsened more than expected in June amid renewed concerns about nation’s economy.
The Thomson Reuters/University of Michigan survey’s preliminary reading on the overall index on consumer sentiment was 71.8, down from 74.3 the month before.
Earlier, the Conference Board said its leading economic index rose by 0.8 percent in May following a revised 0.4 percent decrease in April.
Economists had expected the index to edge up by 0.2 percent compared to the 0.3 percent drop originally reported for the previous month.
