Investing.com - The euro eased back from session lows against the dollar on Tuesday after euro area finance ministers approved Greece’s reform program, clearing the way for a four month extension of the country’s bailout.
EUR/USD was last at 1.1329, off session lows of 1.1297, while EUR/JPY was up 0.54% to 135.39.
Greece’s package of proposed economic reforms was approved by its euro zone creditors on Tuesday, securing Athens an extension of its bailout for another four months.
The package of measures includes taxation and public spending reforms and consolidating pension funds to reduce costs. Athens also pledged not to unwind state privatization programs and to stick to budget targets.
“This list is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review as called for by the Eurogroup at its last meeting,” euro area finance ministers said. “We are encouraged by the commitment to combat tax evasion and corruption.”
Greece’s current €240 billion bailout was scheduled to expire on February 28.
Investors remained cautious ahead of testimony by Fed Chair Janet Yellen before the Senate Banking Committee in Washington, as they awaited any indication on when U.S. interest rates may start to rise.
Last week’s minutes of the Fed’s January meeting were more dovish than expected, showing that some officials thought that raising rates too soon could weigh on the U.S. economic recovery, and that a deterioration in the global economic outlook could also pose a threat.
A report on Tuesday showed that U.S. house price inflation ticked up only modestly in December, after falling to the lowest level in two years in the previous month.
The S&P/Case-Shiller home price index was up 4.5% from a year earlier, following a gain of 4.3% in November.
The dollar remained higher against the yen, with USD/JPY up 0.61% to 119.53.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% to 94.78.