Investing.com - The euro regained ground against the dollar on Thursday after falling in the previous session after the European Central Bank it would no longer accept Greek government bonds from banks seeking funding.
EUR/USD was up 0.20% to 1.1367, off overnight lows of 1.1303, but well below Wednesday’s highs of 1.1484.
The euro weakened after the ECB said it would no longer accept Greek bonds as collateral for lending, shifting the burden on to Greece’s central bank provide additional liquidity for its lenders and increasing pressure on Athens.
The announcement came after Greece's new finance minister Yanis Varoufakis said the ECB would do "whatever it takes" to support member states such as Greece following a meeting with ECB President Mario Draghi.
Greece’s government is seeking debt relief on its current €240 billion bailout, which has fuelled fears over a clash with its creditors that could bring about its eventual exit from the euro zone.
EUR/JPY was up 0.27% to 133.35 from overnight lows of 132.55. The pair rose to highs of 135.35 on Wednesday.
In other trade, the dollar was little changed against the yen, with USD/JPY at 117.28.
Market sentiment remained subdued despite a move by China's central bank to cut bank reserve requirements on Wednesday, in a bid to boost lending and spur growth.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.30% to 94.29.