Euro Drops as Doubts over Greek Deal Grow

Well, that was a short rally

The euro retreated against the dollar on Tuesday, surrendering initial gains on a deal to rescue Greece as skepticism about the broader euro zone returned to weigh on the single currency.

International lenders agreed on a new debt target for Greece that would reduce Greek debt by 40 billion euros, cutting it to 124 percent of gross domestic product by 2020, in a deal that paves the way for the release of urgently needed loans to keep Greece's economy afloat.

The euro fell to a session low of $1.29350 on trading platform EBS, well below a one-month high of $1.3010 struck earlier during the Asian session when the Greek deal was agreed. It was last trading at $1.2955, down 0.2 percent on the day.