FOREX-Euro at record low vs franc on renewed Greece fears

* Swiss franc rises to record high versus euro

* Eurogroup Juncker comments put markets on edge

* Euro surrenders gains after rising above $1.42 (Updates prices; adds comment, details, byline)

By Wanfeng Zhou

NEW YORK, May 26 (Reuters) - The euro fell to a record low against the Swiss franc on Thursday as earlier comments from Eurogroup President Jean-Claude Juncker raised doubts about whether the IMF would release the next aid tranche for Greece.

It was the latest in a series of record lows against the safe-haven Swissie that have come amid heightened anxiety over Europe's sovereign debt crisis.

The euro also surrendered most of its gains against the U.S. dollar, after earlier climbing above $1.42 on a news report that China is interested in buying bailout bonds for Portugal.

Greece risks not getting its next tranche of financial aid from the IMF, due on June 29, with little prospect that European countries can make up any shortfall, said Juncker. For details, see [ID:nLDE74P1Z2]

"There's so much uncertainty. It's going to be hard for the euro to move much higher," said Ronald Simpson, director of currency research at Action Economics in Tampa, Florida. "It continues to be sold on even modest upticks."

The euro fell as low as 1.22045 Swiss francs on electronic trading platform EBS EURCHF=EBS, and last traded down 0.6 percent on the day at 1.2223 francs.

It also hit a 2-1/2-month low against sterling EURGBP=D4.

Against the dollar, the euro changed hands at $1.4117 EUR=EBS, up 0.2 percent on the day. It had earlier risen to $1.42069 on EBS after an article in the Financial Times quoted the chief of the European Financial Stability Facility as saying China was "clearly interested" in buying bonds for the Portugal bailout to be issued in mid-June. [ID:nL3E7GQ04U]

"The market was caught a bit long up near $1.42 and then Juncker's saying the IMF may not release the next tranche for Greece really got the market worried. Everyone was hitting bids and asking questions later," said Steven Butler, head of trading at Scotia Capital in Toronto.

The euro's support lies around the psychologically important level of $1.4000, traders said, which also marks the 200-week moving average. The 100-day moving average is just below at around $1.3996.

If the euro makes a sustained break below $1.4000 then $1.3770, a 38.2 percent Fibonacci retracement of the euro's rise from June 2010 to May 2011, may be a key support, traders said.

The U.S. dollar fell 0.8 percent to 81.34 yen, after hitting a session low of 81.15 on EBS JPY=EBS, hurt by disappointing U.S. economic data. [ID:nN26233734]

GROWING PRESSURE

Pressure has grown on Greece to accelerate reforms and asset sales in return for international aid. Fears of a potential restructuring of Greek debt and the potential of contagion to bigger economies such as Spain and Italy have pushed the euro down 6 percent against the dollar since May.

Inspectors from the EU, ECB and IMF are examining Greece's finances before a decision is made on granting a further 12 billion euro ($17 billion) tranche of the country's 110 billion euro international bailout. Athens needs the money to cover pressing funding needs of 13.4 billion euros.

The IMF cannot continue to lend to Greece until it has financing assurances from EU partner countries for the bailout program, A spokeswoman said on Thursday. [ID:nN26191961]

Should the IMF not pay its next tranche of aid to Greece, then there would be pressure on reluctant European countries to do so, Juncker said.

"That won't work because in certain parliaments -- Germany, Finland and the Netherlands and others too -- there is no preparedness to do so," he said.

"Reading between the Juncker headlines, one can only surmise that EU is not going to guarantee Greek debt for 12 months otherwise why bring it up," said David Gilmore, a partner in FX Analytics in Essex, Connecticut, in a note. "Assuming Juncker is revealing a schism between EU and IMF on Greece, and then he may well be right that a restructuring (soft) is the only option."