* Euro dips, data shows Spanish banks' reliance on ECB
* Still expected to hold within $1.30-$1.35 range
By Julie Haviv
NEW YORK, April 13 The euro fell against the
dollar for the first time in three days on Friday as a rise in
Spain's borrowing costs revived worries about the euro zone, and
as disappointing Chinese data spurred global growth concerns.
The single currency, however, is not expected to break out
of its recent range against the dollar despite the rise in
Spanish bond yields and weaker-than-expected Chinese GDP data.
"Spain and China are by far the main market drivers today,
but the euro remains in a consolidative mode and will likely
stay range-bound for the time being," said Mark McCormick, G-10
currency strategist at Brown Brothers Harriman in New York.
"The Asian markets kind of took the Chinese data in stride
while Europe and the U.S. are viewing it much differently."
Ten-year Spanish government bond yields came
close to testing 2012 highs hit earlier in the week, fueling
concerns the country could be the next source of contagion in
the euro zone debt crisis as it struggles to grow its way out of
Spain's banks relied heavily on European Central Bank
liquidity lines in March and borrowed a record 316.3 billion
euros, almost double the amount borrowed in February.
The common currency was last down 0.7 percent on the
day versus the dollar at $1.3084. That is on the lower end of
the $1.30-$1.35 range it has traded in since January.
McCormick said the euro will likely remain within the
confines of $1.30-$1.34.
"There is little impetus for the euro to break out of that
range until we get a firmer grip on U.S. growth and the euro
The dollar was unchanged against the yen at 81.94.