Dollar slides after Greek debt auction bolsters confidence in Europe, while US data weak

NEW YORK (AP) - The dollar has drifted lower after Greece successfully sold debt to investors while U.S. economic data remained weak.

The euro rose to US$1.2702 in late New York trading Tuesday, from US$1.2598 late Monday. The British pound rose to US$1.5156 from US$1.5033, and the dollar edged up to 88.57 Japanese yen from 88.54 yen.

The successful auction of Greek government debt helped allay some investor anxiety over a downgrade of Portugal's credit rating, lessening the dollar's safe-haven appeal.

Greece raised 1.625 billion euros in its first auction since getting emergency financing in May. The country could instead have used the bailout money for funds. Choosing to go to investors instead was a vote of confidence in Greece's ability to raise money in the markets after deep cuts to government spending.

- AP