The U.S. dollar dropped versus the EUR and other major currencies Wednesday as Greece outlined tax changes and budget cuts to help reduce its deficit, easing concerns about a debt-fueled crisis and reducing the relative appeal of the U.S. currency.
The Dollar also turned lower versus the Japanese currency, slipping 0.4% to buy 88.47 yen. The U.S dollar may fall for a 3rd day against the JPY on speculation job losses in the U.S. will encourage the Fed to keep borrowing costs unchanged.
The USD fell for a 2nd day against the EUR as traders increased bets the Federal Reserve will keep its target interest rate near zero to sustain a recovery in the world's biggest economy. The U.S. currency weakened after Fed Bank of Dallas President Richard Fisher said borrowing costs should remain low until the economy picks up, which won't happen for some time.