The dollar continued to struggle versus its European rivals on Wednesday, hurt by expectations that Greece will ink a deal with its private creditors by week's end.
However, Prime Minister Lucas Papademos still faces a major hurdle in getting his political allies to go along with further austerity measures aimed at trimming the public payroll.
Reports also surfaced suggesting that the European Central Bank will give up profits on government bonds bought in the secondary market last year.
The dollar extended its 2-month low against the euro, slipping to $1.3285 from $1.3230. Only four weeks ago, the dollar touched a 17-month high of $1.2623.