Dollar regains ground as markets digest Fed statement; Greek developments in focus

The dollar regained ground on Friday after markets digested the Fed statement and mixed U.S. data released on Thursday.

EUR/USD declined 0.57% to 1.1298.

Fresh concerns over Greece's future in the eurozone mounted as talks between Greece and its creditors broke down on Thursday. Leaders of the eurozone called for emergency meeting on Monday.

Meanwhile, Bloomberg reports that Greece's Prime Minister Alexis Tsipras expressed hopes for a deal at the upcoming meeting:

“We aimed that final negotiations take place at the highest political level in Europe, and we are now working for the success of this summit,” Tsipras said in a statement. “Those who bank on crisis and terror scenarios will be proven wrong.”

The current bailout for the cash-strapped country expires on 30 June when Athens is also due to repay the IMF around €1.6 billion. IMF Chief Christine Lagarde said that in case the payment is not made on time, Greece will be declared to be in default and would disqualify itself from receiving any further IMF funds.

Cable was also lower impacted by downbeat U.K. data, with GBP/USD losing 0.26% to trade at 1.5836.

The local currency was higher as a rise in income tax and VAT receipts helped to cut UK government borrowing in May.

According to the Office for National Statistics, UK government borrowing fell to £10.13bn in May, down from £12.35bn a year earlier, - the lowest borrowing figure in May for eight years.

Public sector net debt excluding public sector banks now stands at £1.5 trillion, which is 80.8% of gross domestic product (GDP), BBC News reported referring to the ONS.