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MORNING BELL: Euro rebounds on optimism for Greek deal

The U.S. dollar was on track to post its biggest one-day percentage decline against a basket of major currencies in nearly two years on Tuesday on expectations that Greece would reach a deal with its creditors. Greece's creditors are close to finishing a draft agreement to put to the leftist government in Athens, a source close to the talks said, injecting new momentum into long-running negotiations to release aid for the cash-strapped country. The euro rose as high as 2.5% against the dollar, to a more than one-week high of $1.11950. The greenback also dipped against the yen after reaching a 12.5-year peak of 125.070 early in the session, and hit a more than one-week low against the Swiss franc at 0.93115.

Sterling rose against the dollar on Tuesday after data showed British mortgage approvals jumped by the most in over six years in April, while optimism among British construction firms hit a nine-year high in May. Sterling hit an intraday high of $1.5248 after Tuesday's data, up from around $1.5200 before its release. That left it up 0.3% on the day and clear of a three-week low of $1.5170 touched on Monday.

The Russian ruble was mixed on Tuesday, rising against the dollar but falling against a rebounding euro, while Russian shares saw strong gains, helped by a firmer oil price. At 1530 GMT the ruble was 1 percent stronger against the dollar at 53.12, but had lost 0.8 percent, to 59.06 versus the euro. Oil prices rose on Tuesday, driven by a weak dollar and expectations that U.S. crude supplies could have fallen last week for a fifth straight week. U.S. crude settled up $1.06, or 1.8%, at$61.26. It traded 81 cents higher after the data.

 

 



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