US focus: Euro climbs on optimism for Greek Aid

The euro rose to a three-week high against the dollar on speculation European officials will approve additional aid to Greece next month, dimming the prospects of a sovereign-debt restructuring.
Today the Luxembourg Prime Minister Jean-Claude Juncker said the region’s leaders will decide on a new aid package by the end of June and have ruled out a “total restructuring” of Greece’s debt. Germany may stop demanding an early rescheduling of bonds, according to a report.
The euro stayed higher after a report showed German retail sales rose in April as unemployment fell below 3 million for the first time in almost 19 years, fueling bets the European Central Bank will signal next week that it may raise interest rates for a second time this year.
Data showed sales increased 0.6% from March, when they fell 2.7%. Economists had a forecast a 1.8 percent gain. Sales increased 3.6 percent from a year earlier.
A separate European Union report showed euro-region inflation slowed in May to 2.7% from April’s 2.8%, the fastest pace since October 2008.
Inspectors from the EU, the International Monetary Fund and the European Central Bank are set to conclude a review of Greece’s progress in meeting the terms of last year’s 110 billion-euro ($158 billion) bailout in coming days. The EU will then formulate its plan for additional aid.


The yen pared losses versus the dollar and euro after a report showed U.S. consumer confidence unexpectedly fell in May to a six-month low, and other data showed a drop in home prices and weakening manufacturing.
The Canadian dollar gained the most this year versus its U.S. counterpart after the Bank of Canada kept its benchmark interest rate at 1%, where it has been since September.