(MENAFN- FxPro) The euro was lower against the dollar on Thursday as the greenback gained ground ahead of U.S. economic reports later in the day, which were expected to underline expectations for higher interest rates.
EUR/USD was last at 1.1258, down from Wednesday's highs of 1.1385.
The euro turned lower as European equity markets gained for a second day, boosted by hopes that a deal on a cash-for-reforms deal for Greece will soon be reached.
On Wednesday German Chancellor Angela Merkel said Greek Prime Minister Alexis Tsipras had agreed to work "intensively" with the country's creditors in order to avoid default at the end of the month.
Greece's bailout agreement with the European Union and the
International Monetary Fund is set to expire at the end of this month and it cannot make further debt repayments without a new deal.
Investors were looking ahead to U.S. reports on retail sales and jobless claims later in the day that could fuel expectations for a September rate hike by the Federal Reserve.
The dollar was also higher against the yen, with USD/JPY up 0.88% to 123.72, rebounding from Wednesday's lows of 122.45. The dollar ended that session down 1.34%, the largest one-day decline in six months.
The yen rallied on Wednesday after Bank of Japan Governor Haruhiko Kuroda suggested that the relative value of the yen may not continue to fall.
Kuroda said the real effective exchange rate showed that the yen's levels were "significantly low".
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.58% to 95.12, recovering Wednesday's three-week lows of 94.30.
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