By Joseph Adinolfi, MarketWatch , Hiroyuki Kachi
Dollar turns higher against yen after strong ISM report
The euro moved higher against the dollar Monday on reports that a Greek debt deal was imminent -- and held on to its gains despite a speedy denial from Greece's creditors.
The euro's reaction to word of a Greek debt accord -- rising on reports of a deal, then clinging to its gains after Greece's creditors denied the rumors -- mirrors last week's action, when Greece's creditors splashed cold water on rumors of a deal.
"When we had those rumors, the euro moved higher, then when they were denied, it didn't go down," said Steve Barrow, head of G-10 strategy at Standard Bank. "This suggests that the market is more willing to react to positive news [about Greece] than negative news."
The euro had weakened in trade overnight after Athens missed a self-imposed deal deadline Sunday evening.
A gauge of German manufacturing activity in May met economists' expectations, which also helped support the euro, Barrow said.
The euro (EURUSD) traded at $1.0925, compared with $1.0909 late Friday in New York.