LONDON, Apr 06, 2010 (AFP) - The euro slipped against the dollar on Tuesday on renewed concerns about Greece, and the British pound eased after Prime Minister Gordon Brown called a general election for May 6.
In late morning deals here, the euro slid to 1.3415 dollars, from 1.3485 dollars in New York late on Monday.
Against the Japanese currency, the dollar dipped to 93.85 yen, from 94.36 yen late on Monday.
"The Greek issue has once again raised its head undermining sentiment somewhat, particularly with regard to the euro," said Credit Agricole CIB analyst Stuart Bennett on Tuesday.
The European Union had agreed last last month to offer debt-riddled Greece emergency rescue loans in combination with the International Monetary Fund.
"The media have reported that Greece, concerned about the stringent measures likely to be enforced upon them by the IMF, are trying to bypass IMF involvement in their support package, increasing uncertainty," added Bennett.
"These concerns look set to keep the euro on the back foot ahead of Thursday's ECB meeting, although we expect little by way of new information."
Meanwhile, the British pound dipped against rival currencies after Brown declared that the nation will head to the polls in exactly one month's time.
The confirmation of a date triggers a month of fierce campaigning in which Brown's centre-left Labour will battle David Cameron's centre-right Conservatives, who are currently ahead in opinion polls.
Across in Frankfurt this Thursday, the European Central Bank (ECB) will reveal the outcome of its latest monetary policy meeting.
ECB governors are gathering for the first time since EU leaders agreed to accept potential IMF help for Greece, despite strong objections by the bank.
"The euro continues to be capped by concerns about sovereign debt, especially Greece as they seek to fund the next stage of their debt roll over to the tune of about 10 billion euros," said Michael Hewson at CMC Markets.
"It's also not being helped by continued disagreement amongst European leaders about the rates that Greece should be charged for any help, as Greece seeks to change the terms for any financial aid that was agreed at last months EU summit, over fears of further social unrest."
On the bond market, interest rates on leading sovereign bonds shot up because of strong prospects for the United States economy following a stream of upbeat data including better-than-expected US non-farm payrolls.
And the rising risks of the crisis-hit Greek economy also ramped up Greek bond rates.
The Financial Times reported Tuesday that Greece will launch a multi-billion-dollar bond in the United States as it seeks new investors amid weak European demand for its debt.
The FT, which cited an unnamed official, added that Greece would seek 5.0-10.0 billion dollars from US investors.
In London on Tuesday, the euro was at 1.3415 dollars against 1.3485 dollars on Monday, at 125.90 yen (127.26), 0.8851 pounds (0.8815) and 1.4323 Swiss francs (1.4320).
The dollar stood at 93.85 yen (94.36) and 1.0676 Swiss francs (1.0618).
The pound was at 1.5154 dollars (1.5294).
On the London Bullion Market, the price of gold climbed to 1,124.60 dollars an ounce from 1,123.50 dollars an ounce on Thursday.
