REFILE-Euro extends broad losses, hits 8-week low vs dollar

Fri Sep 9, 2011 3:44am EDT

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LONDON, Sept 9 (Reuters) - The euro hit an eight-week low versus the dollar on Friday as funds sold the single currency a day after the European Central Bank dropped its rate tightening bias, removing key support for the euro which had been based on the view interest rates in the region would rise.

The single currency fell to $1.3861 according to electronic trading platform EBS, its weakest since July 12.

Broad selling pressure knocked the euro to a three-week low versus sterling of 86.85 pence, while it fell to 107.47 yen , its weakest since mid-March.

Traders cited euro selling versus the dollar by macro funds that drove the single currency lower across the board, pushing the single currency towards options barriers seen at $1.3850.

(Reporting by London Forex Team)

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