Euro declining on concern about Greek aid package (Reuters) (15-03-2010)

LONDON, March 15 (Reuters) - The euro lost ground on Monday on concerns that any potential financial aid package for Greece would not be enough to ease overall sovereign debt concerns within the euro zone.

Euro zone finance ministers are expected to agree on Monday on a way of providing Greece with financial aid to tackle its debts, but France warned against expecting any hard figures and said there were still obstacles on the way to cementing a deal.

While the market focused on the ministers' meeting in Brussels, analysts said anyone hoping for a quick resolution to the Greek debt issue would be disappointed.

At 1129 GMT, the euro was trading down 0.3 percent on the day at $1.3721, retreating from a three-week high of $1.3796 hit on Friday after euro zone industrial orders data beat forecasts.

Data released on Monday, however, showed euro zone employment fell in the fourth quarter, highlighting the region's fragile recovery.

Traders said there were reports in the market of large option-related sell orders on the approach to $1.3800.

The dollar reversed Friday's losses to hold a slightly firmer tone after a drop in Asian stocks had prompted some investors to shy away from riskier assets.

The dollar traded up around 0.3 percent against a basket of currencies at 80.048. Versus the yen, the greenback was up around 0.2 percent at 90.69 yen.

Sterling was the day's biggest mover, falling 1 percent against the dollar to a session low of $1.5019 on persistent worries about a weak UK economic outlook and on political uncertainty ahead of a general election expected in May.

Source: Reuters