FOREX-Euro slips after Greece approves bailout plan, dollar buoyed by Yellen

Thu Jul 16, 2015 1:01am EDT
 
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* Dollar buoyed as Yellen stays on message about future Fed hike

* Euro touches six-week low versus the dollar

* Kiwi tumbles to 6-year lows after soft inflation data

By Masayuki Kitano and Lisa Twaronite

SINGAPORE/TOKYO, July 16 (Reuters) - The euro edged lower on Thursday after Greece's parliament approved the austerity plan demanded by its lenders, while the U.S. dollar firmed as the Federal Reserve chief did not waver from her views that a rate hike was on the cards this year.

The euro briefly ticked higher on the Greek news, but later sagged back down and touched a six-week low at $1.0912 at one point. The single currency last traded at $1.0930, down 0.2 percent on the day.

The outcome in Athens clears the way for talks on a third bailout from European partners, but clouds the future of Greek Prime Minister Alexis Tsipras' government following a split in his party ranks.

Worries about Greece exiting the euro zone waned after Athens agreed to a debt deal with its creditors earlier this week. That has helped shift the focus back to the outlook for yield differentials in different economies, giving support to the greenback.

"I think the factor for the euro is monetary policy divergence rather than Greece," said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.   Continued...