The euro fell to session lows against the broadly stronger dollar on Monday as markets reacted to news that eurozone leaders hammered out an agreement on a bailout for Greece as long as Athens can implement stringent austerity measures in the coming days.
The euro briefly touched session highs following initial reports of a deal before giving up gains and turning lower.
EUR/USD was last at 1.1053, down 0.94% for the day, off highs of 1.1197, while EUR/JPY was down 0.46% to 13641.
The Greek parliament must pass new legislation by Wednesday to raise sales taxes, cut pension payments and enforce automatic spending cuts if the next budget misses its targets before negotiations on a third bailout program can begin.
Furthermore, €50 billion of state-owned Greek assets would be set aside in a fund to contribute to the recapitalization of the country’s banks.
Parliaments in several eurozone countries will also have to approve any new bailout.
The dollar rose to one-and-a-half week highs against the safe-haven yen, with USD/JPY up 0.52% to 123.40.
The greenback was boosted as the threat of a Greek exit from the eurozone dissipated, removing a potential obstacle from Federal Reserve plans to tighten monetary policy.
Fed Chair Janet Yellen said last Friday that the central bank was on track to raise interest rates at some point this year.
Investors were looking ahead to her testimony on the semi-annual monetary policy report later in the week for any further indications on the timing of an initial rate hike.
The dollar also jumped higher against the Swiss franc, with USD/CHF rallying 0.97% to 0.9477.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, added 0.71% to trade at 96.62.