Dollar higher on hopes of Greek aid deal

THE dollar is higher amid hopes eurozone finance ministers will agree to unlock more than 30 billion euros in aid for Greece.

THE Australian dollar is higher amid hopes eurozone finance ministers will agree to unlock more than 30 billion euros in aid for Greece.

At midday AEDT today, the currency was trading at 104.57 US cents, up from 103.98 cents on Friday afternoon.

Easy Forex senior currency dealer Francisco Solar said the Australian dollar was trading in a narrow range after it followed Wall Street higher on Friday night (Australian time).

"If anything it is holding onto its gains from late last week," he said.

Mr Solar said the currency was being supported by positive sentiment surrounding negotiations between euro zone finance ministers, which will continue tonight.

The finance ministers are considering whether to unlock more than €30 billion in aid for Greece, as part of the bailout package agreed to earlier this year.

A key factor in the discussions is the possibility that some of the nations funding the bailout will need to write down some of Greece's debt.

But speculation that writedowns would not be necessary had lifted market confidence, Mr Solar said.

"The rhetoric we have heard is that a deal is definitely possible without any writedowns, so that has kept sentiment elevated," he said.