Dollar rises against euro on Greek debt worries

AP News
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Posted: Feb 06, 2012 3:45 PM
Dollar rises against euro on Greek debt worries

The dollar rose against the euro Monday as talks between Greek leaders and lenders over a new cost-cutting plan drag on.

The dollar gave up some of its gains after German Chancellor Angela Merkel said she would not accept a Greek bankruptcy.

Greece needs to agree on new austerity measures in order to receive its latest installment of bailout loans. Without the money, Greece could default on its debt next month. A default could hurt European banks and disrupt financial markets.

Talks on the Greek austerity package were postponed to Tuesday. Separately, Greek Prime Minister Lucas Papademos was meeting with the country's creditors late Monday. Greece wants its creditors to swap their Greek government bonds for new ones that are worth 50 percent less.

The euro fell to $1.3125 in late trading from $1.3153 late Friday.

The dollar was mixed against other currencies. The British pound was practically unchanged at $1.5827 from $1.5824. The dollar rose to 76.59 Japanese yen from 76.55 yen, 0.9190 Swiss franc from 0.9178 Swiss franc and to 99.65 Canadian cents from 99.32 Canadian cents.

The dollar fell against the Australian and New Zealand dollar, but rose against the South Korean won and Brazilian real.