Euro Hurt by Worries Over Greece

 
   By Ira Iosebashvili and Tommy Stubbington 
 

        The euro slipped against the dollar Monday, amid fresh worries over Greece's future in the eurozone.
        While Greece and the eurozone have made some progress toward resolving their standoff over Athens' bailout program, more work is needed before a deal is possible, European officials said Monday.
        Meanwhile, Germany's finance minister said a referendum on the country's bailout program may be a good idea, while the International Monetary Fund on Sunday said it is working with Greece's neighbors on contingency plans in case the country defaults on its loan. Another Greek payment to the International Monetary Fund is due Tuesday.
        "The situation with respect to Greece ... provides a stumbling block to further euro strength," said Steven Barrow, a strategist at Standard Bank, in a note to clients. "Another disappointing set of discussions today could certainly increase the market's nerves--at a cost of a weaker euro."
        The common currency was down 0.5% against the dollar at $1.1154 late Monday afternoon in New York.
        Negotiations between Greece and its international creditors--the other eurozone countries and the IMF--have been advancing slowly, despite warnings from Greek officials that the government is close to running out of money.
        "The talks between the Greek government and its international partners are entering a crucial phase, overshadowed by a precarious fiscal situation, heavy debt redemptions, and concerns about the stability of the banking system," analysts at UBS AG said.
        The bank expects a deal between Athens and its creditors to be reached, but added that failure to hammer out an agreement in the coming weeks could put Greece on a "slippery slope" toward an exit from the group of countries that use the euro as their currency.
        The dollar was up 0.3% against the yen at Y120.10. The pound was up 0.9% at $1.5586. The WSJ Dollar Index, which gauges the dollar against a basket of 16 currencies, was recently up 0.3% to 85.52.
        (END) Dow Jones Newswires

        May 11, 2015 17:16 ET (21:16 GMT)

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