Dollar falls as investors await Greek aid package

NEW YORK (CNNMoney.com) -- The dollar fell against the euro Friday as investors gravitated toward more risky assets amid signs an aid package for Greece may be announced over the weekend.

The dollar was down 0.5% against the euro to $1.3314 and was up 0.15% versus the U.K. pound at $1.5299. Against the Japanese yen, the dollar fell 0.1% to ¥93.93.

The euro was boosted by speculation that officials from the European Union and International Monetary Fund could announce a bailout for Greece on Monday.

Greece has reportedly agreed to additional austerity measures, at the behest of Germany, in order to receive an emergency bailout package that could total $159 billion over three years.

"The prospect of an official bailout of Greece have caused fears to recede as it looks increasingly likely that the EU and IMF will come to their rescue with a more concrete package," Kathy Lien, director of currency research at Global Forex Trading.

While the expected announcement eased default fears that have surrounded Greece for several weeks, the long-term outlook for the debt-stricken nation remains uncertain.

"The details will be extremely important," said Lien. "If the EU and IMF announce a satisfactory deal by Monday, next week should be positive for risk. If a deal fails to materialize, expect the selling in the forex market to resume."

Meanwhile, in the U.S., the Commerce Department said Friday that gross domestic product, the broadest measure of economic activity, grew at an annual rate of 3.2% in the first quarter of 2010.

That missed the 3.3% that economists surveyed by Briefing.com were expecting, but it marked the third consecutive quarter of growth.