FOREX-Greek debt concerns keep euro under pressure
* Euro slips vs dollar due to revived Greek debt worries
* Traders eye EU summit next week to see if Greece gets aid
* Euro/Swissie hovers near 17-month low
(Adds comment, updates throughout; pvs TOKYO)
LONDON, March 19 (Reuters) - The euro slipped on Friday, pressured by nagging concerns about Greece's deficit problems as traders waited to see if Athens can secure aid from euro zone members at a summit next week.
It hovered near a one-week low hit against the dollar on Thursday after a media report that Athens saw limited prospects for euro zone assistance highlighted uncertainty about whether the country will be able to service its debts. "Greece is not off the radar yet. It will continue to dominate headlines, and weigh on the euro," said Sverre Holbek, currency strategist at Danske in Copenhagen.
Greece on Thursday said it could not achieve promised deficit cuts if borrowing costs remain high, and may have to turn to the International Monetary Fund. [ID:nLDE62H0LL]
But it dismissed a report it was planning to turn to the global lender as soon as early April if EU leaders do not agree on a rescue plan next week.
By 0848 GMT, the euro EUR= had slipped 0.1 percent on the day to $1.3586, matching its lowest in more than a week, and is on track to end the week roughly 1 percent lower, its worst performance since early February.
Concerns about Greece stubbed out a rally fuelled by improving risk appetite earlier in the week, which had pushed the common European currency to a five-week high against the dollar.
SWISSIE GAINS
The euro EURCHF= slipped 0.2 percent against the Swiss franc to 1.4353 on electronic trading platform EBS, its weakest since October 2008, in the aftermath of hawkish comments from a Swiss National Bank official.
SNB board member Jean-Pierre Danthine said on Thursday Swiss firms and consumers should prepare for rising borrowing costs and exchange rates determined by the market as interest rates could not stay low forever. [ID:nLDE62H2EE]
The SNB's statement last week made no change to its pledge to counter excessive gains in the franc as it continues to appreciate against the euro. The euro has fallen roughly 1.5 percent since then.
The dollar was broadly supported, edging up 0.3 percent against a currency basket to 80.478, and traded at 90.50 yen against the Japanese currency JPY=, little changed on the day.
It rose 0.4 percent against the Canadian dollar to C$1.0185 CAD=D4, staying off a 20-month low of C$1.0071.
Traders anticipated Canadian inflation and retail sales data due later in the day, with some in the market seeing a possibility that more evidence of an improving Canadian economy may push the currency to parity versus the U.S. dollar. ECON (Editing by Ruth Pitchford)
- Tweet this
- Link this
- Share this
- Digg this
- Reprints



Follow Reuters