Dollar stays up in New York

The dollar rose against the euro for a second straight session on Thursday but gains were curbed after Greece won consent of a team of European Union-International Monetary Fund inspectors for its new five-year austerity plan. Greece's agreement came after committing to an additional round of tax rises and spending cuts, sources with knowledge of the talks said. "We have a deal," said one of the sources.
The dollar, however, still reigned supreme against the euro as fears about global growth had investors rushing to safety following a downgraded outlook from the US Federal Reserve and ongoing uncertainty about a resolution of Greece's debt crisis. "The Greece news was a near-term excuse to book profits on the euro's sharp decline, but it really does not represent any meaningful improvement in the debt situation," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
Greece's austerity measures, scheduled for a vote on Tuesday, could see rough sailing in parliament, some analysts said. News of the Greece deal helped the euro pare losses against the Swiss franc after hitting a record low and curb a steep decline against the safe-haven dollar. In late afternoon New York trading, the euro fell 0.7 percent against the dollar to $1.4256, according to Reuters data, up from a global session low of $1.4125.
"The dollar's strength was a symptom of a risk-off day and not because people think it has medium-term value," said Sara Zervos, senior vice president and global debt team leader at Oppenheimer Funds in New York. The single euro-area currency had earlier hit a new trough versus the Swiss franc, falling to 1.18470 francs. The euro was last at 1.19560, down 0.8 percent. The dollar was last up 0.3 percent at 80.56 yen. The US Dollar Index, which tracks the greenback against six major currencies, was up 0.7 percent at 75.278, with near-term resistance at its 100-day moving average at 75.630.