Dollar strengthens against euro on Greek worries

AP News
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Posted: Sep 19, 2011 5:21 PM
Dollar strengthens against euro on Greek worries

The dollar strengthened against the euro Monday, as worries about Greece's debt crisis intensified.

Investors are concerned that European officials won't give the country its next $11 billion payment in time to avoid defaulting on its debt. The payment is part of last year's $151 billion bailout package.

On Friday, European finance ministers meeting in Poland decided to delay making a decision on whether to make the payment until October.

A default could undermine the global economic recovery and hurt banks that hold Greek debt.

In late trading Monday, the euro fell to $1.3671 from $1.3791 late Friday.

Investors are looking ahead to a Federal Reserve policy decision expected Wednesday. Some Fed members have hinted it might take new economic stimulus measures, but some analysts think no new initiatives will be announced.

In other trading, the British pound fell to $1.5691 from $1.5788. The dollar rose to 0.8825 Swiss franc from 0.8760 Swiss franc and to 99.10 Canadian cents from 97.98.

Meanwhile, the dollar fell to 76.50 Japanese yen from 76.87 Japanese yen.