The euro traded at $1.1364, off
Thursday's high of $1.1450. It has largely stuck to a narrow
$1.1300-1.1450 range this week, as all eyes remain on talks between
Greece and the euro zone.
With
Greece's EU/IMF bailout program due to expire on Feb. 28, Greek Prime
Minister Alexis Tsipras, who won power promising to ditch the bailout,
urgently needs to secure a financial lifeline to keep the country afloat
beyond late March.
So far, guarded optimism is prevailing in the market, chiefly on the grounds that failure to strike a deal would be too costly for both as it could risk a Greek debt default and exit from the euro.
On Thursday, Germany rejected a Greek proposal for a six-month extension to its euro zone loan agreement, ahead of the euro zone finance ministers' meeting on Friday.
But in a document seen by Reuters, Greece appeared to have moved substantially toward the position taken by euro zone finance ministers in negotiations on Monday that ended without a deal, as Athens vowed to ditch the 240 billion euro bailout program.
Yields on Greek and other lower-rated euro zone bonds slid on Thursday on hopes of an agreement.
"The market is used to seeing this by now, but if a deal isn't reached today, the euro could face selling pressure and dollar/yen could also see the same as risk appetite will be hurt," he said.
So far, guarded optimism is prevailing in the market, chiefly on the grounds that failure to strike a deal would be too costly for both as it could risk a Greek debt default and exit from the euro.
On Thursday, Germany rejected a Greek proposal for a six-month extension to its euro zone loan agreement, ahead of the euro zone finance ministers' meeting on Friday.
But in a document seen by Reuters, Greece appeared to have moved substantially toward the position taken by euro zone finance ministers in negotiations on Monday that ended without a deal, as Athens vowed to ditch the 240 billion euro bailout program.
Yields on Greek and other lower-rated euro zone bonds slid on Thursday on hopes of an agreement.
"The market is used to seeing this by now, but if a deal isn't reached today, the euro could face selling pressure and dollar/yen could also see the same as risk appetite will be hurt," he said.
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