(Corrects title in paragraph 3 to global market strategist, not
chief international strategist)
* Euro touches 1-week high above $1.10 as bears unwind bets
* Dollar index cuts loss on fewest jobless claims since 1973
* IMF warns about weak yen, further dollar strength
* Kiwi jumps after RBNZ cut rate less than some had thought
By Richard Leong
NEW YORK, July 23 (Reuters) - The euro strengthened on
Thursday, briefly rising above $1.10 for the first time in a
week, as the Greek parliament approved a second set of reforms
required to start negotiations with lenders in a bid to avert
bankruptcy.
The greenback stalled against other major currencies despite
expectations that the U.S. Federal Reserve would raise interest
rates by year end.
Of Athens' latest move toward a bailout, "it's perceived as
a positive for the euro. Greece might even be perceived as
taking the initiative to revive talks with creditors," Paul
Christopher, global market strategist at Wells Fargo Investment
Institute in St. Louis.
Other analysts downplayed the pop in the euro, as the
long-term ability of Greece to stay solvent and keep its
membership in the euro zone remains in doubt. ID:nL5N1034YN
"The market has been short euro. It's not surprising to go
through these periodic bouts of (short-covering) squeeze," said
Vassili Serebriakov, currency strategist at BNP Paribas in New
York.
The euro was last up 0.6 percent against the dollar and yen
at $1.1000 EUR= and 136.19 yen EURJPY= , respectively.
The greenback pared losses briefly versus the yen after the
government said first-time filings for unemployment benefits
fell to 255,000 last week, the lowest since November 1973. This
supported the view of an improving jobs market that may allow
the Fed to raise interest rates as early as September.
ID:nL1N10317J
The dollar resumed its earlier weakness as U.S. Treasury
yields fell to two-week lows on growing losses on Wall Street
and deflation worries from falling commodity prices. It was down
0.1 percent at 123.79 yen JPY= but held above a global session
low of 123.68 yen. .N US/ O/R
The dollar index .DXY was last down 0.5 percent at 97.094.
The yen was briefly on the defensive after the International
Monetary Fund warned Japan to avoid over-reliance on a weak
currency to reflate its economy. ID:nL1N103195
The IMF also cautioned a further rise in the dollar could
hurt other countries. ID:nL1N1031WY
Among other major currencies, the New Zealand dollar was
the biggest mover after the country's central bank disappointed
those who had bet on a larger cut in interest rates and toned
down its call for more falls for the kiwi. ID:nL3N1030WA
The kiwi was last up 0.6 percent at $0.6617 NZD=D4 , above
a six-year low of $0.6498 set on July 14.