Euro edges up on dollar as crisis talks progress

WASHINGTON — The forex market again hung on the words and reports coming out of European crisis talks Monday, with a marginal bit of optimism pushing the euro up against the dollar.

At 2100 GMT the euro was trading at $1.3930, up from $1.3894 late Friday.

The euro also edged up to 105.97 yen from 105.94 yen, while the dollar fell to 76.07 yen from 76.26 yen.

Trade did not give up any of its volatility, amid conflicting reports

over whether a deal was reached on a Greek debt haircut with private bank holders of Athens bonds, and other unclear reports on Italy’s response to eurozone and market pressure to improve its finances.

“With the failure of EU officials to come up with a concrete rescue

plan over the weekend, investors now look to Wednesday’s summit where leaders are expected to announce a package to shore up European banks and avert a sovereign default,” said Michael Boutros of DailyFX.

“However with a flurry of conflicting remarks from various European leaders, we find it unlikely that any resolution reached on Wednesday will be enough to satisfy market expectations.”

The dollar fell to 0.8804 Swiss francs (0.8821 francs), while the British pound rose to $1.5994 ($1.5950).