Euro steady as traders await Greek rescue deal


The euro traded in a narrow range against the dollar Monday in a nervous market awaiting the outcome of a meeting of Greece’s creditors on crucial aid for the debt-crushed country.
The euro bought $1.2971 at 2200 GMT, slightly down from $1.2973 at the same time Friday.
The euro fell against the Japanese currency, to 106.38 yen from 106.90 late Friday, while the dollar fell to 81.98 yen from 82.60.
The eurozone and the International Monetary Fund battled late Monday in Brussels under mounting pressure to conclude a long-delayed deal on immediate funding to avert bankruptcy for Greece.
With creditors struggling to agree on how to tackle the country’s ever-growing mountain of debt over the medium term, the aim was to get short-term financing taps switched back on. The pressure grew over the day, with the European Union’s euro commissioner Olli Rehn deeming it “essential” to reach a deal before the talks broke up.
“Following last week’s unexpected failure to come to an agreement, people aren’t exactly sure what to expect from today’s meeting,” said Benjamin Spier at DailyFX.
The British government’s surprise nomination of Canadian central bank chief Mark Carney as the new Bank of England governor, had little impact on the market, said Sebastien Galy at Societe Generale.
Carney will take over from Mervyn King, who has led the BoE since 2003 and is due to step down on June 30.
“By leaving the BoC and taking the head seat at the BoE, Carney brings with him the experience of rebuilding an economy that rebounded faster than all other G8 nations while maintaining a strong AAA rating with the rating agencies,” said Neal Gilbert at GFT. The dollar was virtually unchanged at 0.9278 Swiss francs from 0.9279 late Friday, while the British pound fetched $1.6026, down from $1.6033.