AFP - The euro again fell against the dollar on Wednesday as persistent concerns over Greek debt weighed on the European single currency.
The euro dropped to $1.4065 in London trading from $1.4100 late in New York on Tuesday, when the single currency had climbed back above $1.41 after reaching a two-month low point of $1.3970 at the start of the week.
On Wednesday, the dollar rose to 82.10 yen from 81.91 yen on Tuesday.
"The dollar and the yen are stronger today (against the euro) as concerns over the Greek debt crisis increase along with worries over the extent of economic slowdown in the global economy," said Derek Halpenny, European head of currency research at The Bank of Tokyo-Mitsubishi UFJ.
Markets fear that any debt restructuring for Greece -- which the ratings agencies have said they will treat as an outright default -- will increase the pressure on Italy and Spain, the eurozone's third and fourth-largest economies.
A year ago, a 110-billion-euro Greek bailout was supposed to have stopped the rot.
Despite the debt worries, economic recovery has taken hold in the eurozone and is broadening, the OECD said on Wednesday, raising its 2011 growth forecast to 2.0 percent from 1.7 percent.
"In the euro area as a whole, the recovery has taken hold and is spreading beyond manufacturing to service sectors," said the Organisation for Economic Cooperation and Development, which groups 34 of the world's advanced economies.
"Growth is becoming better balanced ... with the effects from still-accommodative monetary policy and favourable financial conditions outweighing the drag exerted by fiscal consolidation and the near-term pressures on real incomes from high energy prices," it added.
The OECD kept its 2012 eurozone growth forecast steady at 2.0 percent in its latest twice-yearly Economic Outlook report.
Sterling held firm after official data showed the British economy had expanded by 0.5 percent in the first three months of 2011, confirming an earlier estimate.
In London on Wednesday, the euro changed hands at $1.4065 against $1.4100 late in New York on Tuesday, at 115.47 yen (115.51), £0.8697 (0.8716) and 1.2334 Swiss francs (1.2403).
The dollar stood at 82.10 yen (81.91) and 0.8769 Swiss francs (0.8801).
The pound was at $1.6172 (1.6174).
On the London Bullion Market, gold prices eased to $1,526.48 an ounce from $1,527 late on Tuesday.
