Dollar dips against euro, rises on yen

The dollar dipped against the euro on Wednesday due to increased optimism about Greek debt talks, but continued to climb against the yen.

PHOTO: BLOOMBERG

MAY 28, 20156:41 AM

[NEW YORK] The dollar dipped against the euro on Wednesday due to increased optimism about Greek debt talks, but continued to climb against the yen.

Greek Prime Minister Alexis Tsipras said the debt-wracked country was "in the final stretch" of talks with its EU-IMF creditors of an agreement to release bailout funds.

Markets have worried that the Greek government is running out of cash and may not have enough to repay loans from the International Monetary Fund that are due in a series of payments from June 5.

German Foreign Minister Frank-Walter told reporters that a swift solution on Greece was imperative, warning that there would be "no winners" if Greece leaves the eurozone.

Meanwhile, the dollar continued to advance against the yen after notching an eight-year high on Tuesday following solid US data on consumer confidence and durable goods orders.

"As US economic data continues to improve, there is substantial breathing room for the US Dollar to gain as traders reduce their bearish bets and instead take up trades based on rate hike expectations being dragged forward," said Christopher Vecchio, currency analyst at DailyFX.

AFP