Summary Dollar fell versus euro as division between Greece and its creditors raised risk quotient in market.
NEW YORK (AFP) - The dollar edged lower versus the euro Wednesday as new divisions between Greece and its official creditors raised the risk quotient in the market.
Late-night talks in Brussels between Greek Prime Minister Alexis Tsipras and EU President Jean-Claude Juncker aimed to resolve the differences holding up the release of 7.2 billion euros in new funds to help the country avert a disastrous default at the end of the month.
The dollar, which had powered up 1.5 percent on the euro Tuesday as a deal seemed close, gave up 0.3 percent to $1.1208 per euro as caution filled the markets.
With other risks around, the market did not reward the dollar when the third official estimate of first-quarter US growth showed a smaller contraction than earlier believed, 0.2 percent rather than 0.5 percent.
Boris Schlossberg of BK Asset Management said a final deal would not necessarily help the euro.
"Any relief rally may be short-lived however, as markets could focus on the possible further liquidity expansion by the ECB in the wake of any formal agreement," he noted.
