NEW YORK, March 26 The euro erased marginal gains versus the U.S. dollar on Tuesday to trade flat after news on Italy and Cyprus news emerged.
An official in Italy's center-right party said there are still wide differences with the center-left, which if not resolved will mean that Italy will have to go back to the polls.
Also on Tuesday, Cyprus's finance minister, Michael Sarris, said that an exit from the European single currency was not being contemplated and would be disastrous for the island nation.
Trade was extremely choppy during the North American session, with the single currency swinging from minor losses to flat to minor gains numerous times.
The euro last traded at $1.2848, nearly flat on the day. It was trading at around $1.2858 before the news, according to Reuters data.