On Tuesday the euro remained broadly lower data indicated that German economic sentiment
deteriorated slightly this month and as Greek concerns continued to weigh.
EUR/USD hit lows of 1.0661 and was last at 1.0684, down 0.5% on the day.
Data released Tuesday showed that German economic optimism fell this month for the first time since October, but current conditions remain bright.
The ZEW Centre for Economic Research said that its index of German economic sentiment ticked down to 53.3 from March’s 54.8 while economists had expected a reading of 55.3. But the current conditions index jumped to 70.2 up from 55 last month, the highest level since July 2011.
Moreover, market players were eyeing the Greek crisis. Athens is no closer to reaching an agreement with its euro zone partners and the International Monetary Fund over economic reforms required to access remaining bailout funds, fuelling fears that the country could be forced out of the euro zone.
Additionally, the European Central Bank is
considering tighter rules on Greek banks in return for emergency
liquidity, adding to pressure on Athens, Bloomberg reported Tuesday.
The euro was weaker against the yen, with EUR/JPY at 127.67, down from 127.93 late Tuesday.
The common currency was near three-month lows against the Swiss franc, with EUR/CHF at 1.0259.
The dollar was stronger after falling against its peers last week when a series of downbeat economic data saw investors push
back expectations on the timing of a rate hike by the Federal Reserve.
