Euro drops as eurozone meeting misses Greek debt deal

[NEW YORK] The euro dropped against other major currencies on Monday after a meeting of eurozone finance ministers failed to reach an agreement on debt-riddled Greece's bid for bailout funds to avoid default.

Eurozone finance ministers meeting in Brussels held a tough line, saying Greece could not hope for any of the 7.2-billion-euro (S$10.7 billion) final payment of its 240-billion-euro bailout from the European Union and the International Monetary Fund until it makes key reforms.

"We welcomed the progress that has been achieved so far... At the same time, we acknowledged that more time and effort are needed to bridge the gaps on the remaining open issues," the Eurogroup statement said after talks in Brussels.

The radical new Greek government, however, managed to find enough cash to order the repayment to the IMF of 750 million euros by the Tuesday deadline.

"According to Athens officials, Greece has already taken steps to meet their IMF payment on Tuesday and when the payment is received, it could trigger a relief rally in the currency because it means that at least for the time being, default is avoided," said Kathy Lien of BK Asset Management.

The dollar, meanwhile, remained strong, benefiting from Friday's solid US jobs report for April that "left dollar bulls wanting more," said Joe Manimbo at Western Union Business Solutions.

AFP