Euro slips as clock ticks on Greece bailout proposal

[NEW YORK] The euro slipped against the dollar on Thursday as markets awaited Greece's bailout proposal to its eurozone partners in a bid to avert default on its mountain of debt.

Although Eurogroup chief Jeroen Dijsselbloem acknowledged that he had received the new Greek reforms-for-cash proposals, less than two hours before the midnight deadline, their details were not immediately available.

The mood on European markets brightened, pushing stocks higher as reports suggested Athens was ready to accept increased belt-tightening as creditors considered debt relief.

A full summit of all 28 EU leaders is set on Sunday to decide whether Greece merits its third bailout program in five years.

"European leaders will decide if Greece deserves new loans on Sunday and if the answer is yes then currencies will rally in relief," said Kathy Lien of BK Asset Management.

"But if the talks break down and the Eurogroup concedes to letting Greece leave the euro, then currencies and global equities are in trouble."

AFP

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