The euro declined alongside other relatively safe assets including German bonds and U.S. Treasuries after Greece’s Prime Minister Alexis Tsipras offered to accept most of the bailout conditions demanded by his country’s creditors.
The euro has moved like a haven currency in the past few weeks, rising when Greece’s situation worsened and rebounding when sentiment improved. Tsipras’s proposal was contained in a letter from the Greek leader to his creditors, which was dated June 30 and obtained by Bloomberg.
“The euro fell despite good news and one explanation is that when the Greece situation or sentiment improved, focus shifted to fundamentals which favor the dollar against the euro,” said Jane Foley, a senior currency strategist at Rabobank International in London. “When the Greek tensions escalated, money tends to flow back into core assets.”
The euro dropped 0.3 percent to $1.1111 as of 6:34 a.m. New York time. It was little changed at 136.51 yen and 70.99 pence.