Summary The euro surged Tuesday as the outlines of a possible deal on Greece's finances took form.
NEW YORK (AFP) - The euro surged Tuesday as the outlines of a possible deal on Greece s finances took form, though a report citing ECB objections took the common currency off its highs.
The euro jumped 1.6 percent to as high as $1.1512 as Greece dropped calls for a radical debt restructuring and writedown and said it wanted mostly longer payment terms to give the government more budget resources.
But the euro slipped back slightly to $1.1479 after the Financial Times said the European Central Bank objected to a key plank in the plan, Athens s desire to issue 10 billion euros ($11.5 billion) in short-term debt to cover financial gaps while it negotiates a new deal with creditors.
Data that showed US manufacturing output fell for a fifth straight month in December also weighed on support for the greenback.
"The recovery in risk appetite, decline in oil prices and concerns that this week s US economic reports may not live up to expectations triggered profit taking" in major dollar pairings, said Kathy Lien of BK Asset Management.
