Euro falls vs dollar on Greek political turmoil

AP News
Posted: May 08, 2012 4:26 PM
Euro falls vs dollar on Greek political turmoil

The euro fell against the dollar Tuesday on growing uncertainty about Greece's government and whether the country will continue to be part of the euro.

The euro fell to $1.3030 in late trading Tuesday from $1.3050 late Monday.

After a weekend election, Greek leaders failed to create a new government Tuesday. One party leader said Greece's commitment to budget cutting is no longer valid because voters rejected those deals.

The comments worried traders because Greece needs to stay on its austerity program to get it next batch of bailout money. Going off the program could force Greece out of Europe's shared currency.

France is also on trader's minds. Traders are waiting to see how the country's new president will affect Europe's current plans to solve its debt crisis. Europe had pushed through budget cuts, but the election results in France this weekend proved that voters are against them.

In other trading Tuesday, the British pound fell to $1.6165 from $1.6184. The dollar rose to 0.9219 Swiss franc from 0.9205 Swiss franc and to 99.86 Canadian cents from 99.32 Canadian cents.

The dollar fell to 79.79 Japanese yen from 79.94 yen.