Dollar gains on renewed Greece jitters

NEW YORK (CNNMoney.com) -- The dollar rose Wednesday as investors shied away from risk amid concerns about the European Union's plan to aid Greece.

What prices are doing: The dollar was up 0.4% versus the euro to $1.3351 and gained 0.1% against the U.K. pound $1.5249. Against the Japanese yen, the dollar fell 0.5% to ¥93.32.

What's moving the market: The dollar strengthened as investors turned cautious amid renewed worries about European debt problems and signs the Federal Reserve is concerned about economic growth.

The euro came under pressure Tuesday after reports surfaced that Greece was uncomfortable with the prospect of accepting financial support from the International Monetary Fund.

Athens denied the reports, but the rumors put investors on edge, with the yield spread between Greek and German bonds widening significantly.

"The euro was unable to sustain the recovery on Wednesday as debt fears remained a key influence," analysts at Sucden Financial wrote in a research report.

Debt concerns weighed on European stock markets, while U.S. stock futures were also lower.

Investors were also digesting minutes from the Federal Reserve's latest meeting, released Tuesday, suggesting the central bank is worried that the economic recovery may lose steam going forward, despite recent moderate improvements.

But Fed policymakers indicated that they could raise rates as soon as they see continued signs of life in the economy, according to the minutes.

"There is still likely to be a mood of cautious optimism surrounding the economy and the dollar should be in a position to gain support on yield grounds," wrote analysts at Sucden Financial.

Meanwhile, Treasury Secretary Tim Geithner announced plans to meet with Chinese Vice Premier Wang Qishan on Thursday. The surprise meeting comes after U.S. officials decided last week to delay a report expected to criticize China for manipulating the value of its currency, the yuan.