The single currency fluctuated in a $1.4267-$1.1.4378 range and was last flat on the day at $1.4348. "This seems a bit early to come up with something concrete. I think we'll get more posturing before a deal can be agreed on Greece," said Gavin Friend, currency strategist at nabCapital.
Jitters over a possible second bail-out package for Greece had pushed the single currency down 0.5 percent to $1.4284, nearing a seven-week low of $1.4254 hit the previous day. Against the yen, the euro was up 0.5 percent at 115.79, after sliding to a 6-week low in Asian dealing around 114.76.
The euro's recent fall was accelerated by last week's commodity sell-off and Monday's move by ratings agency Standard & Poor's to cut Greece's rating to B from BB-, dragging it further into junk territory.
But some analysts said it was unlikely to fall as sharply as it did a year ago when the Greek debt crisis hit financial markets, because there was now a safety net for indebted countries.
The cost of insuring Greek debt against default and its yield premium over German benchmark Bunds fell after the Dow report though bond yields remained at euro-era record highs. "It's very difficult to trade as there are so many conflicting headlines about a restructuring being the only way forward or not. Something will have to give," a bond trader said. For the latest updates PRESS CTR + D or visit Stock Market news Today
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