Dollar retreats as Greek fears abate

By Kate Gibson and Sarah Turner, MarketWatch NEW YORK (MarketWatch) — The dollar on Monday retreated from 2010 highs as opinion polls illustrated support for Greek political parties backing a rescue plan, curbing appetite for assets perceived as safe. The ICE dollar index DXY +0.17% fell to 82.228 from 82.4 late Friday, when it a level not seen since 2010. Click to Play Does the euro have a future, or is it too late? The future of the European economy is in doubt and there’s also the possibility of the U.S. economy being pulled back into recession. The much-battered euro EURUSD -0.14% was nearly flat at $1.2540 from $1.2514 Friday, when it hit a 22-month low. Read more on Friday's currency market action. Mitul Kotecha, head of global foreign exchange strategy at Credit Agricole, pinned the move for both currencies Monday on broad-market relief triggered by weekend opinion polls in Greece. “Greek opinion polls show growing support for pro-bailout parties. While the Greek election is still some weeks off, suggesting that uncertainty will not ease quickly, this news will allay fears of a quick ‘Grexit’” Kotecha said. Major U.S. markets were closed Monday for the Memorial Day holiday. Against the Japanese yen USDJPY +0.18% , also regarded as a safe-haven asset, the dollar bought 79.455 yen, compared with ¥79.67 in late trading last week. Kate Gibson is a reporter for MarketWatch, based in New York. Sarah Turner is MarketWatch's bureau chief in Sydney. http://www.marketwatch.com/story/dollar-index-retreats-as-greek-fears-abate-2012-05-28?siteid=rss&rss=1