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Europe's currency moved backwards by 0.6 per cent versus the dollar to $1.2892 after touching $1.2986, cutting its weekly gain to 1.7 per cent, reports Bloomberg.
It also fell by 0.4 per cent to 99.55 against the yen, with the dollar remaining steady at 77.17 yen.
Investors moved towards the stability offered by the US currency as Greek debt talks rumbled on, disrupting market confidence despite the relatively positive news emanating from Spain and France's debt auctions yesterday.
"The euro had a very, very strong rally over the last three days on the assumption that the Greek deal is going to be done," said Boris Schlossberg, director of research at online currency trader GFT Forex in New York.
He explained that the lengthy discussions have spooked traders to a degree.
Bloomberg noted yesterday that the euro had gained on its major counterparts after Spain sold more debt than expected at auction.
Posted by Greg Secker
