The euro slipped
against the dollar as nerves took hold before key talks between Greece
and euro zone finance ministers, while the New Zealand dollar sank to a
near two-month trough as speculation over when the country's central
bank could cut rates gathered momentum.
The euro fell 0.6 percent to $1.1137 EUR=,
pulling back from a two-month peak of $1.1392 struck Thursday when the
outlook for the European economy thawed and euro zone bond yields
spiked, grabbing attention away from Greek debt saga.
The rise in euro zone yields petered out late last week, taking some support away from the common currency.
"Greek-related
headlines have begun filtering out over the weekend, and the debt
negotiations will be one of this week's currency themes. Today's
Eurogroup meeting and its impact on the euro will be in focus," said
Shinichiro Kadota, chief Japan forex strategist at Barclays in Tokyo.
The Eurogroup of euro zone finance ministers has ruled out clinching a deal to unlock aid for Greece at Monday's meeting, although Athens remains hopeful that the meeting will note progress in talks with lenders. Greece risks defaulting on its debt if it does not receive fresh funding.
"It is difficult to put a finger on the exact flows, but it appears that large lot selling went through ahead of the Greek debt talks," said Kyosuke Suzuki, director of forex at Societe Generale in Tokyo.
"The Eurogroup meeting is not the deciding event. According to the market's view, it is not until July or August that Greece's cash flow becomes very serious. But the current liquidity problems Greece already faces do not make the euro an attractive currency," he said.
The dollar stood little changed against the yen after Friday's mixed U.S. jobs data failed to offer much of a buying incentive.
The greenback was steady at 119.93 yen JPY=, having slipped from an overnight high of 120.24 after the release of Friday's U.S. jobs numbers.
The rise in euro zone yields petered out late last week, taking some support away from the common currency.
The Eurogroup of euro zone finance ministers has ruled out clinching a deal to unlock aid for Greece at Monday's meeting, although Athens remains hopeful that the meeting will note progress in talks with lenders. Greece risks defaulting on its debt if it does not receive fresh funding.
"It is difficult to put a finger on the exact flows, but it appears that large lot selling went through ahead of the Greek debt talks," said Kyosuke Suzuki, director of forex at Societe Generale in Tokyo.
"The Eurogroup meeting is not the deciding event. According to the market's view, it is not until July or August that Greece's cash flow becomes very serious. But the current liquidity problems Greece already faces do not make the euro an attractive currency," he said.
The dollar stood little changed against the yen after Friday's mixed U.S. jobs data failed to offer much of a buying incentive.
The greenback was steady at 119.93 yen JPY=, having slipped from an overnight high of 120.24 after the release of Friday's U.S. jobs numbers.
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