Investing.com - The euro edged cautiously higher against the dollar on Tuesday, supported by hopes for a resolution to a standoff between the new Greek government and its international creditors.
EUR/USD inched up to highs of 1.1351, from overnight lows of 1.1313.
Investor confidence was boosted after the Greek government outlined its plans to renegotiate the terms of its bailout with its creditors, retreating from demands for a debt writedown.
Greek Finance Minister Yanis Varoufakis has outlined a “menu of debt swaps” to ease the burden of the country’s debt, under which creditors would swap outstanding debt for new growth-linked bonds.
The move eased concerns over a conflict which could lead to Greece’s exit from the euro zone.
Athens main stock index advanced more than 8% on Tuesday, supporting broader gains in European equality markets.
Meanwhile, the yield on Greek 10-year bonds was sharply lower.
Elsewhere, the euro was steady against the yen, with EUR/JPY at 133.33, off overnight lows of 132.40.
The yen gained ground against the other major currencies earlier in the day, boosted by strong gains against the Australian dollar after the Reserve Bank of Australia cut interest rates to a record low 2.25% in a bid to spur slowing growth.
In other trade, USD/JPY was at 117.45, after falling to lows of 116.88 overnight.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% to 94.69.