Dollar up as traders await debt news

THE dollar was stronger today after trading sideways during the overnight session, as investors await developments from the US and Europe on debt problems.

THE dollar was stronger today after trading sideways during the overnight session, as investors await developments from the US and Europe on debt problems.

At 7am AEST today, the dollar was trading at 107.49 US cents, up from 107.37 US cents at close yesterday.

Since 5pm AEST on Wednesday, the local unit traded between 107.21 US cents and 107.61 US cents.

ANZ Banking Group senior markets dealer Alex Sinton said the Australian dollar would continue to trade in a narrow range during the domestic session, while investors await progress from the US and Europe on their debt problems.

"The market is awaiting credible news - and I stress, credible - out of the US and Europe," Mr Sinton said.
"It's all well and good if they throw together a plan, but how credible it is will be the key."

European Union leaders are expected to craft a second rescue package of up to 120 billion euros ($159.25 billion) for Greece when they gather for a special summit in Brussels tonight.

Traders are also closely watching developments in Washington, where US President Barack Obama is due to meet opposition Republican leaders to seek a compromise solution to the debt-ceiling battle.

In economics news today, National Australia Bank releases its second quarter business survey.