Euro falls vs dollar on Spain worries

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Euro falls vs dollar on Spain worries

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The euro weakened against the dollar Friday as investors fretted about Spain's finances.

29 September,2012 07:30 am

The euro was traded at $1.2856 around 2100 GMT, down from $1.2911 at the same time Thursday.It also fell to 100.12 yen from 100.19 late Thursday, losing a bounce after Spain reported the results of stress tests on its banking sector.The single currency was bid up... after the results of the Spanish bank stress tests were reported largely in-line with expectations. However, the brief rally was short lived as the slim gain was promptly retraced, Briefing.com analysts said.The dollar gained against the Japanese currency, fetching 78.88 yen compared with 77.60 yen late Thursday.The euro could come under further pressure when the European Central Bank holds its scheduled meeting next week, said David Song, currency analyst at DailyFX.We are likely to see (ECB) President Mario Draghi maintain a dovish tone for monetary policy, Song said.But the Governing Council may come under increased pressure to tackle the deepening recession in Europe as the governments operating under the single currency become increasingly reliant on monetary support.The dollar also rose against the Swiss currency, to 0.9397 francs from 0.9372 francs late Thursday, while the pound fell to $1.6157 from $1.6234.