Forex – Euro lower after Greece debt talks break down – The euro was lower against the dollar and the yen on Tuesday after talks between Greece and its euro zone partners on the country’s debt crisis broke down on Monday after Athens rejected a proposal to extend its bailout.
EUR/USD eased to 1.1347, off Monday’s highs of 1.1428.
Greece’s current €240 billion bailout is due to expire at the end of the month and the new Greek government does not want it extended. Athens rejected a proposed six-month extension of the bailout on Monday, calling it “unacceptable”.
Athens has until Friday to request an extension otherwise its bailout will expire on February 28 and the country will run out of money.
The clash between Greece and its creditors has sparked fears that it could trigger the country’s exit from the euro zone.
The European Central Bank was to decide whether to suspend emergency financial support for Greece later in the day.
EUR/JPY was almost unchanged at 134.56 after falling to overnight lows of 133.92.
In other trade, USD/JPY edged up to 118.52, off overnight lows of 118.24.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.06% to 94.40.