The dollar held gains, trading near a two-year high versus the euro amid concern early elections in Greece risk severing the country´s bailout agreement. The dollar was steady at $1.2152 per euro in the early hours after the Bloomberg Dollar Spot Index climbed to near a five-year high. It is poised for its first annual advance since at least 1989 against all of its 31 major peers, buoyed by an improving U.S. economy and indications that the Federal Reserve will raise interest rates next year. The stronger dollar has hit commodities, which have also been dragged lower by crude´s retreat into a bear market. Greece´s prime minister said he will ask for a vote to be held next month after failing to get his presedential nominee confirmed. The general election to be held on January 25, a few weeks before the nation´s 240 billion euro bailout expires. The prospect of an early vote has roiled financial markets in Greece and evoked memories of the height of the financial crisis in 2012, when the country´s euro membership was in jeopardy. The yen dropped to as low as 120.73 per dollar last session, close to the seven-year low of 121.85 set December 8. Japan´s currency has retreated 13 percent this year, the worst performer among 11 Asian currencies. The euro touched $1.2143 yesterday, its weakes intraday level since August 2012. WTI crude rose 0.2 percent to $53.72 a barrel after sliding 2.1 percent last session to $53.61, its lowest settlement since May 1, 2009. Brent sank 2.6 percent yesterday to $57.88 per barrel in London, also the lowest in more than five years. Both blends are down at least 45 percent this year as the biggest U.S. oil output in about 30 years collides with slowing global demand and OPEC´s refusal to reduce its own production levels. The Bloomberg Commodity Index fell 0.4 percent last session as the dollar´s gains reduced the appeal of raw materials as a store of value.
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