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Euro slips versus dollar; Greek debt crisis boosts demand for safer assets

LONDON. June 27. KAZINFORM The euro slid for a fourth day against the dollar as concern the Greek parliament won't approve budget cuts boosted demand for the world's reserve currency.
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According to Bloomberg, the greenback climbed against all but one of 16 major peers tracked by Bloomberg. Greek lawmakers must approve a 78 billion- euro ($110 billion) austerity package to receive a loan payment and future financing. New Zealand 's dollar declined for a third day after data showed the nation's trade surplus in May was narrower than economists forecast. South Korea 's won fell as Europe 's crisis reduced appetite for emerging-market assets.

"People are taking off risk heading into the vote," said Adam Cole , head of global currency strategy at Royal Bank of Canada Europe Ltd. in London. "What we're seeing essentially is people covering short dollar positions ahead of what looks like could be quite a noisy week. It probably will get through, and if it does the euro will probably have a decent bounce, but it's certainly not a clear cut call."

The euro fell 0.1 percent to $1.4171 at 8:30 a.m. in London . It earlier dropped to $1.4103, the weakest since June 16. The common currency was little changed at 114.20 yen from 114.13 on June 24, when it fell to 113.78, the least since June 20. The dollar advanced 0.5 percent to 80.79 yen, after touching 80.89, also the strongest since June 16.

For full version go to http://www.bloomberg.com/news/2011-06-26/euro-weakens-against-dollar-before-greece-vote.html

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