CURRENCIES: Euro Rises After Greece Agrees Bailout Deal With Creditors

By Sara Sjolin, MarketWatch Features Dow Jones Newswires

Dollar flat as Fed set to kick off two-day policy meeting

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The euro moved a leg higher on Tuesday, boosted by relief that Greece and its creditors have reached an agreement to unlock the next tranche of bailout money for the debt-laden country.

The shared currency bought $1.0911, up from $1.0900 late Monday in New York, to trade close to its highest level in five months.

The euro has been on a march higher in recent weeks, lifted by optimism over the result of the first round of the French election, which saw pro-EU Emmanuel Macron nab first place. Macron will go up against far-right euroskeptic Marine Le Pen in the runoff round this Sunday. Polls are giving Macron a comfortable lead, indicating he could emerge as the next French president.

On Tuesday, investors also welcomed news from Greece, which has been locked in marathon talks with international lenders. Early in the morning, Greek Finance Minister Euclid Tsakalotos said both sides had agreed on a round of austerity measures (http://www.marketwatch.com/story/greece-and-its-creditors-agree-to-bailout-package-2017-05-02) and economic overhauls to keep the Greece's EUR86 billion bailout program going. The deal will release the next disbursement of aid, needed to make debt repayments in July and avoid a default this summer.

In other currencies, the dollar traded mixed, with the ICE Dollar marginally lower at 99.119 with the Federal Reserve set to kick off its two-day policy meeting later Tuesday. The central bank will announce its rate decision on Wednesday at 2 p.m. Eastern Time.

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Against the yen , the greenback bought Yen112.11, compared with Yen111.84 on Monday.

The pound rallied to an intraday high of $1.2913 after the U.K.'s manufacturing purchasing managers index hit a three-year high in April. Sterling on Monday fetched $1.2885.

(END) Dow Jones Newswires

May 02, 2017 04:44 ET (08:44 GMT)