FX round-up: Euro at two-month low against dollar

LONDON (ShareCast) - The euro traded at a two-month low against the dollar on Monday, in thinner than usual holiday trading, as markets fretted about Greece's bailout programme.

US bond markets and banks were closed in Monday for the Veterans Day holiday.

The single currency fell to $1.2710, little changed from a two-month low of $1.2688 on Friday, as Greece's international creditors failed to agree on the country's bailout programme despite the Greek government approving a tough 2013 budget.

Uncertainty about whether Greece will receive a fresh round of bailout funds, to avoid a default on its loans, kept pressure on the euro and fuelled mild safe haven flows.

The dollar index, which measures the greenback against a basket of six major currencies, rose to 81.052 from 81.044 on Friday, helped by concerns about the US fiscal cliff.

Against the yen, the dollar changed hands at ¥79.48 compared to ¥79.52 on Friday after data showed the Japanese economy contracted more than expected in the last quarter as the strong yen and ongoing territorial dispute with China takes its toll on the country's exports. The euro hardly moved against the Japanese currency at ¥101.06.

Sterling bought $1.5877 on Monday compared to $1.5901 on Friday after the Bank of England kept interest rates and its bond-buying programme unchanged.



CJ