TD: Euro dips back below $1.26 in morning European trading; pound lower
BERLIN (AP) - The euro has dipped back under $1.26 after hitting two-month highs late last week and the British pound also is lower in morning European trading.
The 16-nation euro bought $1.2597 on Monday - down from $1.2647 in New York late Friday. Fear of public debt and slow growth in Europe have hurt the euro this year but it has been helped recently by hopeful signs on banks' health.
The pound was down to $1.4990 from $1.5067.
The dollar gained against the yen after bad losses for Japan's governing party in weekend parliamentary elections raised the prospect of political gridlock as the country tries to reduce a ballooning deficit and revive growth. It was up to 88.90 yen from 88.54 yen.
