The dollar rose against most major global currencies on Tuesday Asian
session.
Mondays
Eurogroup meeting ended with Eurozone finance ministers agreeing to extend
Greece’s fiscal adjustment period by two years but deciding to put off until
next week final decisions on the disbursement of the next Greek bailout tranche
and the method to make the country’s debt sustainable. Once
approved, the next shot of financial aid will end shorter-term solvency issues
for Greece, but the country and creditors must still agree on ways to lower
longer-term debt burdens, which dampened spirits.
The dollar also saw support on growing fears the U.S. risks falling into
an avoidable recession in 2013. If untreated, the ‘’fiscal cliff’’ could siphon
over USD600 billion out of the U.S. economy next year alone in the form of
rising taxes and cuts to government spending.
Later Tuesday, the U.S. is to release official data on the federal budget
balance. In Europe, the ZEW Centre for Economic Research will release its
closely watched report on German economic sentiment, as well as data on
sentiment in the wider Eurozone.
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