Dollar Rises As Greece, Spain Jitters Stir

The dollar turned higher during Asia trading Monday, gaining against the euro as financial troubles in Greece and Spain fanned fears about the debt-stricken currency bloc.

The ICE dollar index , which measures the greenback against a basket of six other currencies, rose to 79.517, from 79.323 in North American trade late Friday. The rival WSJ dollar index  rose to 69.48 from late Friday’s 69.31.

The euro  fell to $1.2949, down from $1.2989 late Friday.

Greece was back in the spotlight Monday following weekend reports the country faces a budget shortfall nearly double previous estimates to satisfy international conditions for emergency aid. See: Troika reportedly puts Greece’s budget gap at $26 billion.

There were also separate reports that French Prime Minister Jean-Marc Ayrault said Greece could be given more time to meet the goals imposed by its international creditors. See: French PM says Greece may get more time.

Traders also monitored developments from Spain, as reports last week said the country was working on a package of economic reforms and could apply for a international bailout as early as this week.

However, global head of currency strategy at Brown Brothers Harriman Marc Chandler said “we do not anticipate a formal request by Spain until mid-October at the earliest.”

Also Monday, the British pound  slipped to $1.6215, down from $1.6252 in North America late Friday.

The dollar edged lower against the Japanese yen   to change hands at ¥78.04, down from ¥78.12 Friday.

The Australian dollar  fell to $1.0420, down from $1.0451.

Marketwatch