Aryanews- The dollar rose against most major currencies on Tuesday amid persisting worries over Greece's debt problems.
EU Commissioner on Economic and Monetary Affairs Olli Rehn began a visit to Greece on Monday to discuss the debt-hit country's fiscal problems. Rehn and Greek officials agreed that there is a need for additional measures and these should be presented as soon as possible in order to make sure that Greece could reach its goal of cutting budget deficit by 4 percent in 2010, a spokesman of European Commission said on Tuesday.
Greek Prime Minister Georgios Papandreou is to hold talks with German Chancellor Angela Merkel in Berlin on Friday. Greece's current fiscal problems are expected to be a key aspect of the bilateral talks. Merkel told reporters on Monday that the euro is in a period of great challenge and Greece must take ownership of its budget crisis.
There were reports that Germany and France are considering buying Greek bonds through state-owned banks. But investors remained cautious as no concrete aid plan has been confirmed yet. However, markets think that the EU will use necessary methods to ensure financial stability of the eurozone.
Market concerns about fiscal sustainability have risen sharply in a few advanced economies including Greece, increasing the risk of spillovers, the International Monetary Fund said in a report on Monday. In most advanced G-20 economies, ensuring fiscal sustainability is a key priority and policy challenge, notably in light of the surge in government debt levels.
No important economic data was released on Tuesday. Investors are waiting for some reports due Wednesday, including U.S. private employment, mortgage applications, activity index of nonmanufacturing sector and the Federal Reserve's current economic conditions report.
The euro bought 1.3551 dollars in late New York trading compared with 1.3574 dollars it bought late Monday. The pound fell to 1.4954 dollars from 1.5007 dollars.
The dollar fell to 1.0328 Canadian dollars from 1.0415 Canadian dollars, and rose to 1.0799 Swiss francs from 1.0783 Swiss francs. It rose to 89.13 Japanese yen from 89.07 Japanese yen.