Dollar little changed amid Europe's troubles

AP News
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Posted: Jun 24, 2011 3:58 PM
Dollar little changed amid Europe's troubles

The dollar was little changed in late trading Friday as investors hoped for a second bailout for Greece, the euro bloc's most troubled member, to keep it from default.

Fears of a possible debt default by Greece, and the catastrophic impact it would have on the European banking system, have led to volatile euro trading over the past couple of weeks. The euro climbed to almost $1.47 earlier this month before investors started to worry that Greece might default on its debts as soon as July.

Late Friday, the euro dipped to $1.4171 from $1.4208, while the British pound slipped to $1.5974 from $1.5987. The dollar ticked down to 80.52 Japanese yen from 80.58 yen.

The Greek parliament has to approve euro28 billion ($40 billion) in unpopular "austerity" measures in a vote next week before European officials and the International Monetary Fund will approve the release of emergency loans that Greece was scheduled to receive next month.

If the cuts aren't passed, Greece will likely default on its debts, which economists say would wreak havoc on Europe's banks and cause trouble for other indebted European countries.

The new austerity measures are also required for European officials to approve a second, longer-term bailout for Greece. Officials and politicians said on Thursday that they had agreed to provide a second aid package beyond the original euro110 billion ($156 billion) deal.

In other trading Friday, the dollar rose to 98.80 Canadian cents from 97.99 Canadian cents. The dollar was almost unchanged at 0.8377 Swiss franc from 0.8388 Swiss franc.