1st LD Writethru: U.S. dollar falls against euro on Greek outlook

The U.S. dollar dipped against the euro on Friday as Greece's new proposal boosted market optimism.

The latest proposal for a debt deal with its lenders from Greek government was submitted late Thursday to the relevant international institutions and Greek parliament to avoid a looming bankruptcy and Grexit.

French President Francois Hollande said Friday that the proposal was "serious and credible." Meanwhile, a senior European Union official said the Euro working group will look at the assessment of the institutions about the proposal Saturday to see if conditions are met. He added that if the meeting led to an agreement there would be no summit on Sunday.

The shared currency was up 0.9 percent at 1.1136 in late trading. The dollar index, which measures the greenback against six major peers, was down 0.64 percent at 95.988 in late trading.

The speech by Federal Reserve Chair Janet Yellen also weighed on the market Friday. Yellen said she expected that "it will be appropriate at some point later this year to take the first step to raise the federal funds rate and thus begin normalizing monetary policy."

In late New York trading, the euro rose to 1.1136 dollars from 1.1013 dollars in the previous session, and the British pound climbed to 1.5513 dollars from 1.5361 U.S. dollars in the previous session. The Australian dollar went up to 0.7447 dollar from 0. 7441 dollar.

The U.S. dollar bought 122.84 Japanese yen, higher than 121.32 yen of the previous session. The greenback declined to 0.9409 Swiss franc from 0.9488 Swiss franc, and dropped to 1.2688 Canadian dollars from 1.2721 Canadian dollars. Endite