The US Dollar Index is holding onto gains racked up last week that saw it return to the 80 level as the euro currency continues to struggle as relief at Greece’s debt restructuring deal gives way to concerns over euro zone growth and risk of debt contagion.
Latest Dollar Index Rate
The ICE US Dollar Index, which tracks the US dollar against six major world currencies was trading at 80.005 – 14.20 GMT today, from the session open of 80.040.
The euro was little changed at $1.3113 as the New York session opened, having earlier dipped to its lowest level since February 16. Stops were cited at $1.3150 with option expiries at $1.3100 likely to sway trade in the near term.
One trader said a close below $1.3080 could prompt some hedge funds to increase short euro positions. Below there further chart support stood around $1.3055, the 50 percent retracement of its January to February rally.
The ICE US Dollar Index rose to 80.132, its highest since January 25, before slipping back slightly.
Greece Debt Restructure
On Friday, Greece took final steps to restructure its debt, using legislation to force remaining private creditors to swap Greek debt for new bonds worth considerably less.
While that paved the way for a fresh bailout for Greece, there was little sign of relief in Spanish and Italian debt markets, where sovereign bond yields rose. All these worries are likely to see the euro ease towards $1.30 and even lower in coming weeks.
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US Dollar Index holding near 80 as euro struggle’s over debt contagion
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