U.S. dollar rose sharply against the euro on Friday as investors worried on news that European authorities noticed a potential for debt rescheduling Greece. The single currency sank to 1.4348 dollars at 21:00 PM or Saturday (11/06/2011) at 04.00 GMT from 1.4509 dollars in late trading Thursday in New York.
The European Commission said on Friday that international supporters of the bailout plan to avert the threat of default on a very large Greek debt is now being studied the possibility of "scheduling". In Athens, Greek Finance Minister George Papaconstantinou said the debate about a new bailout package for the Greek seems to be growing on the voluntary participation of the private sector.
However, a spokesman for the credit rating agency Moody's warned that any action would be considered a failure of Greece on its debts if it considers that private investors are required to reschedule their debts rather than just asked to do so in a way that truly voluntary.
Benign inflation outlook of the European Central Bank also dent the market expectations for higher interest rates, dealers said. ECB President Jean-Claude Trichet said the bank's position on inflation was one of "strong vigilance", usually interpreted as a future tightening of monetary policy in the eurozone.
"Trichet indicated rate hike in July, but the ECB rather benign with long-term prospects for inflation," Teppei said Ino, an analyst at Bank of Tokyo-Mitsubishi UFJ.
Against the Japanese unit, the dollar was flat at 80.31 yen. Taken Dollar 0.8429 Swiss francs (0.8414), while the pound was at 1.6233 dollars (1.6365), affected by bad data UK manufacturing.
The European Commission said on Friday that international supporters of the bailout plan to avert the threat of default on a very large Greek debt is now being studied the possibility of "scheduling". In Athens, Greek Finance Minister George Papaconstantinou said the debate about a new bailout package for the Greek seems to be growing on the voluntary participation of the private sector.
However, a spokesman for the credit rating agency Moody's warned that any action would be considered a failure of Greece on its debts if it considers that private investors are required to reschedule their debts rather than just asked to do so in a way that truly voluntary.
Benign inflation outlook of the European Central Bank also dent the market expectations for higher interest rates, dealers said. ECB President Jean-Claude Trichet said the bank's position on inflation was one of "strong vigilance", usually interpreted as a future tightening of monetary policy in the eurozone.
"Trichet indicated rate hike in July, but the ECB rather benign with long-term prospects for inflation," Teppei said Ino, an analyst at Bank of Tokyo-Mitsubishi UFJ.
Against the Japanese unit, the dollar was flat at 80.31 yen. Taken Dollar 0.8429 Swiss francs (0.8414), while the pound was at 1.6233 dollars (1.6365), affected by bad data UK manufacturing.
