Dollar weakens against most major currencies

AP News
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Posted: Jun 13, 2011 4:27 PM
Dollar weakens against most major currencies

The dollar slipped Monday against the euro Monday even as problems in Greece highlighted Europe's debt crisis. The yen and pound also were stronger against the U.S. currency.

European leaders have yet to reach an agreement on additional aid for Greece. Standard & Poor's on Monday cut Greece's credit rating further into junk territory, saying there was a significant risk of the country defaulting on its debt.

The euro rose to $1.4412 from $1.4355 late Friday, but fell to a record low against the Swiss franc, which investors consider a safe haven currency. It tends to rise during periods of geopolitical tension or when investors worry about slowing global growth or whether Greece will run out of funds.

European finance officials are meeting in Brussels next week to hammer out a deal on extended aid for Greece. The European Central Bank and the German government disagree on how best to contain the crisis, leaving investors worried about the prospects of an agreement.

Investors expect Greece to run out of money next year without new financial aid. Greece already received 110 billion euros in rescue loans last year.

In other trading Monday, the British pound rose to $1.6370 from $1.6239, while the dollar dipped to 80.19 Japanese yen from 80.32 yen.

Concerns over Greece affected the Swiss franc and euro trade more than the dollar and euro trade because the problems in the U.S. are equally worrisome as those in Europe, said Joseph Trevisani, chief market analyst at FX Solutions.

The U.S. government's failure to raise the debt ceiling before an August deadline, as well as worry that the U.S. economic recovery is slowing, has weighed on the dollar recently.

Elsewhere Monday, the dollar fell to 0.8380 Swiss franc from 0.8420 Swiss franc and was unchanged at 97.67 Canadian cents.