NEW YORK (AP) — The dollar is rising because of renewed worries over the Greek debt crisis, despite a tentative deal with investors who bought Greece’s national bonds.
The euro had gained ground over the past two weeks as investors looked ahead to a deal between Greece and its bondholders that would cut Greece’s debt and secure much-needed bailout money.
But the deal isn’t done, and investors are still worried that Europe faces a deep recession. A Greek default would sting the European economy, perhaps triggering defaults in other European countries. Portugal’s borrowing costs are already jumping.
The euro was down to $1.31 Monday morning from $1.3208 late Friday. It was worth almost $1.50 in May.
