LONDON Jan 3 The euro extended falls against a
broadly firmer dollar on Thursday, hitting a fresh three-week
low on worries about the prospect of more U.S. budget wrangling
in coming weeks.
The euro fell 0.6 percent to $1.3108, its lowest
since mid-December as optimism following this week's deal to
avoid steep tax rises and spending cuts faded.
Traders said it extended falls on selling by a U.S. name
after stop loss sell orders were triggered on the break below a
low set in Asian trade around $1.3124. More stop loss sell
orders were reported below $1.3090.
The dollar index, which measures the dollar's value
against a basket of currencies, also rose to a three-week high
of 80.116, while the euro dropped to a three-week low against
the UK pound of 80.86 pence. This took it well below
an 8-month high of 82.25 pence struck last week.