NEW YORK: The euro dipped against other major currencies Friday despite improved growth numbers in the ailing eurozone, as the market worries about Greece's debt crisis.
"The euro is mildly softer despite slightly better-than-expected data, and with comments from Greek and German officials signaling willingness to compromise with respect to Greece's reform, budget and debt plans," said Eric Viloria, currency strategist at Wells Fargo Securities.
Official data released Friday showed economic activity in the eurozone was up slightly in the fourth quarter, expanding by a better-than-expected 0.3 percent after a 0.2 percent rise in the third quarter.
The currency bloc's fourth-quarter growth was led by a 0.7 percent gain in Germany, Europe's largest economy, that also beat estimates.
The euro slipped to $1.1393 around 2200 GMT, from $1.1406 late Thursday.
"The euro really didn't benefit from these good growth numbers because the market knows they will change nothing in the European Central Bank's monetary policy," said Vassili Serebriakov of BNP Paribas.
Beginning next month, the ECB will launch an unprecedented trillion-euro bond-buying program through September 2016 in a bid to ward off deflation and boost the flagging eurozone economy.
Traders were also watching Greece's negotiations with its creditors Friday as hopes rose that a make-or-break meeting with eurozone financial ministers Monday could reach a new debt deal.
The new anti-austerity Greek government is demanding a replacement agreement to its 240-billion-euro ($270-billion) bailout from the European Union, the European Central Bank and the International Monetary Fund.
The bailout is due to expire at the end of February, and failure to reach a replacement agreement could trigger a Greek default and a chaotic exit from the euro.
Comments
Comments are closed for this article.