Greece cliffhanger keeps forex rates steady

Foreign-exchange traders held their positions Friday ahead of a weekend during which the Greek drama over its bailout loans from the EU and IMF could come to a head.

Foreign-exchange traders held their positions Friday ahead of a weekend during which the Greek drama over its bailout loans from the EU and IMF could come to a head.

The euro, dollar, yen and pound pairings were all little-changed, with the dollar at $1.1260 to the euro at 2100 GMT, exactly where it was at the same time Thursday.

With Greece`s official creditors drawing a line and Athens still appearing unready to compromise on their terms, markets were girded for a possible worst-case scenario of the country defaulting on its debt and possibly breaking away from the eurozone.

There was still hope that both sides could find room for a deal that would finance Athens for another nine months and, hopefully, stabilize its economy.

Beyond Greece, markets were looking to the Federal Reserve policy meeting on the coming Tuesday and Wednesday. Most analysts think the Fed will hold off on a rate hike, but at the same time signal that it could come any time.

The fact that the dollar did not gain at all on some stronger economic data in recent days "suggests that traders viewed this as insufficient to boost the currency`s overall standing," said David Rodriguez at DailyFX.

"Whether or not Fed officials show any meaningful change in rhetoric may ultimately decide near-term direction in the US currency."

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