FIN: Euro rises against dollar as Greece feels heat
AFP - The euro recouped some of its recent losses against the dollar on Tuesday as Europe heaped pressure on Greece to tackle its massive state debt.
The euro rose to 1.3648 dollars from 1.3598 dollars at 2200 GMT on Monday.
The dollar dipped to 89.96 yen from 90.02 yen on Monday.
Europe sharply increased pressure on Greece on Tuesday in a bid to regain market confidence, after giving Athens just 30 days to burst its bulging deficit and debts.
Non-eurozone Sweden led the charge going into a full meeting of European Union finance ministers in Brussels, warning that Athens must "surpass" financiers' expectations if it is to fight off market attack dogs.
A decision by the 16 euro countries late on Monday to impose "additional measures" on Greece by March 16, further cutting costs and raising taxes should progress be deemed insufficient, was to be rubber-stamped on Tuesday.
The European currency had been hit in recent days by worries that Greece's debt crisis will spread in the eurozone, and by EU data showing that Europe's economic recovery has stalled.
On Friday, the euro had fallen to 1.3532 dollars, its lowest level in nearly nine months.
Dealers also digested data showing that German investor sentiment fell for the fifth month in a row in February amid growing fears of a eurozone debt crisis and a deteriorating jobs market.
The ZEW economic research institute said that its financial sector indicator lost 2.1 points to 45.1 points, its lowest level since July 2009, as concern generated by the Greece's debt and deficit debacle roiled equity, bond and foreign exchange markets.
The barometer stood at 47.2 points in January and analysts polled by Dow Jones Newswires had forecast a drop to 41.5 points this month.
"Though we have passed through the deepest valleys of the depression, the worries about the labour market, budget deficits and the euro have not lessened," a statement quoted ZEW president Wolfgang Franz as saying.
In London on Tuesday, the euro was changing hands at 1.3648 dollars against 1.3598 dollars at 2200 GMT on Monday, at 122.77 yen (122.41), 0.8702 pounds (0.8683) and 1.4664 Swiss francs (1.4655).
The dollar stood at 89.96 yen (90.02) and 1.0744 Swiss francs (1.0777).
The pound was at 1.5684 dollars (1.5660).
On the London Bullion Market, the price of gold rose to 1,114.30 dollars an ounce from 1,098.25 dollars an ounce on Monday.
