Currencies: Dollar books 1st quarterly loss against the euro since March 2014

The dollar finished the second quarter lower against the euro on Tuesday, its first quarterly loss against the shared currency since the first quarter of 2014.

The buck also weakened against every major currency except the Japanese yen and New Zealand dollar.

The dollar booked most of its losses early in the quarter and most notably declined for five straight weeks in April and May amid a run of disappointing U.S. economic data. Dovish signals from Federal Reserve policy makers exacerbated its weakness by causing investors to push back their expectations for the Fed’s first interest rate hike since 2006.

Higher interest rates would benefit the dollar by increasing returns for foreign investors.

Worries about whether Greece might soon exit the eurozone dominated trading Tuesday, but once again headlines appeared to have little impact on the euro. The currency showed relative stability throughout the session.

The Eurogroup considered a Greek proposal for a third bailout, and there were reports earlier in the day that Athens was considering a new proposal from the Eurogroup, but talks ultimately led nowhere.

The euro EURUSD, +0.0449%  traded at $1.1134, down 0.7% on the day, as Greece was just hours away from defaulting on a €1.54 billion ($1.8 billion) payment to the International Monetary Fund. The euro’s move lower wiped out its gains from Monday’s session, when a short squeeze elicited a stunning reversal in the shared currency.

Greek officials said earlier they would default on the payment.

The shared currency traded at $1.1216 late Monday in New York.

Read: Brace for euro at $1.05 if Greece jitters persist

Greece’s existing bailout program expired Tuesday and the country’s citizens are expected to vote in a referendum July 5 that amounts to a vote on staying in the eurozone.

Read: Greece’s referendum will be complicated

The dollar weakened against the USDJPY, -0.08%  yen, pound GBPUSD, +0.0382%  and most of its other industrialized and emerging-market rivals Tuesday. But the ICE U.S. Dollar Index DXY, +0.56% a measure of the dollar’s strength against a basket of six rival currencies of which the euro is the largest constituent, rose 0.58% to 95.54.

The index finished the quarter down 2.9%.

Read the latest news on the Greek debt crisis here

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