By Deborah Levine
EURUSD DXY
NEW YORK (MarketWatch) -- The euro extended losses in early U.S. trading on Wednesday, after turning negative following the European Central Bank's announcement that its first longer-term lending operation garnered very strong demand. A too-high amount of borrowing by European banks could spark worries that banks will pile into risky carry trades - borrowing cheaply from the ECB and buying high-yielding peripheral sovereign debt. Analysts also noted it could just be a reversal of much of the euro's gains in the prior session in anticipation of the operation. The euro EURUSD -0.21% fell from as high as $1.3198 earlier to $1.3041, compared to $1.3079 in North America late Tuesday. The dollar index DXY +0.20% , a measure of the greenback's performance against six major global currencies, turned up to 79.999 from 79.871 Tuesday.
