Euro recovers from Russia debt worries The dollar slid lower versus the euro, reversing an earlier move, as U.S. equities weakened and details emerged about Treasury Secretary Timothy Geithner's plan to bail out banks. The euro had been under pressure earlier after a news report quoted a Russia banking group as saying domestic banks will ask foreign financial institutions to reschedule loans worth up to $400 billion. The group later denied it had made that request. Read more on Russian banks. The euro traded at $1.3055, up from $1.3002 in North American activity late Monday after reaching a low of $1.2809 earlier in the day. The dollar index , which measures the U.S. unit against a trade-weighted basket of six major currencies, rose to 84.870 from 84.884 on Monday. The dollar slipped to 91.29 yen versus the Japanese currency from 91.43 yen. There may be reluctance "to chase the dollar too hard" at current levels, said Daragh Maher, currency strategist at Calyon. Details unveiled by Geithner may spur some near-term relief, improving appetite for risk and crimping safe-haven flows. Geithner is set to unveil more details of the bank rescue package at 11 a.m. Eastern time. See full story. Declines were limited as investors still expect the Senate to vote on the economic stimulus bill Tuesday. The euro bought 119.05 yen, little changed from Monday. The high exposure of euro-zone firms to Russia makes the single currency particularly vulnerable to signs of turmoil. An article in Japan's Nikkei daily suggesting the Russian move triggered selling in equity markets and pressured the euro. The single currency is particularly vulnerable to jitters over Russia given the exposure of euro-zone firms to the Russian economy, traders said. But the head of Russia's Association of Regional Banks Anatoly Aksakov told a separate media outlet that the $400 billion figure referred to Russian firms' total foreign debt for the next five years and said there was no request to reschedule debt. "We deny we've asked the government to reschedule the foreign debt of Russian companies," Aksakov told Dow Jones Newswires. "We're not planning to make such a proposal." Traders await the release of the Bank of England's Quarterly Inflation Report Wednesday, which could be the next pivotal point for sterling. Last Thursday, the Bank of England cut its official bank rate to 1% from 1.5%, setting another all-time low for the benchmark.

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