The euro rallied against the dollar on Wednesday on reports that Greece had reached an agreement in principle with the European Union to stay in an EU bailout program.
The euro had eased earlier in the day ahead of a euro group finance ministers' meeting that was set to discuss Greece, with failure to find common ground about the country's debt burden set to keep investors edgy and price action choppy.
The dollar, meanwhile, hit a one-month high against the yen, bolstered by a rise in Treasury yields. Trade was thin, though, with Japanese markets closed for a public holiday.
In Europe, Greek Finance Minister Yanis Varoufakis attends his first meeting of euro zone finance ministers where he will spell out plans to drop his country's bailout and end austerity.
He will seek a "bridge agreement'' to buy time until June fora full settlement. The euro moved higher on Tuesday on optimism that a compromise is likely, which would be more acceptable to markets than Greece exiting the euro zone. Any suggestion of talks breaking down could see a sharp sell-off in the euro.
The euro edged down to $1.1309, and lower against the pound at 74.095 pence, not far from a 7-year low of 74.06 struck in late January. It later reversed on reports that Greece and the EU were closer to a deal.
"Greece is center-stage and the Greeks are likely to present a plan that has met with resistance. So there is a downside risk for the euro and any rallies into $1.1360 will be sold,'' said Jeremy Stretch head of currency strategy at CIBC World Markets.