* Uncertainty over Greece hits jittery euro
* Greek banks ask govt for more financial support
* Australian dollar buoyed by rate expectations/commodities
(Updates with fresh prices, more details)
By Neal Armstrong
LONDON, April 7 (Reuters) - The euro hit a fresh one-week
low against the dollar on Wednesday as concerns over Greece's
fiscal problems escalated, while the Australian dollar stayed
buoyed on expectations of higher interest rates.
The euro has been pressured in recent sessions following a
media report Greece wanted to renegotiate a deal reached last
month over joint EU-International Monetary Fund aid.
[]
Greece denied the report but on Tuesday the yield spread
between Greek and German government bonds exceeded 4 percentage
points, the widest since the euro's launch.
Sentiment was further dented by news that Greek banks have
asked for permission to access remaining funds from a state
support package first agreed in 2008 [].
"Renewed uncertainty over Greece is hurting an already
jittery euro," said Stuart Bennett, senior FX strategist at
Credit Agricole.
"Even though the market is already heavily short of euro,
there is still downside risk."
Worries over Greece's debts and those of other peripheral
euro zone countries have knocked the single currency down almost
10 percent from its January high of $1.4582.
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For a graphic on the euro and Greek bond spreads, click
http://graphics.thomsonreuters.com/0210/EZ_EURGR0210.gif
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At 1145 GMT, the euro <EUR=> fell as low as $1.3337, down
0.4 percent on the day.
Revised data showing euro zone growth stalled in the last
quarter of 2009 also weighed. []
"The GDP data, even though it is backward-looking, shows the
euro zone is in a difficult situation. The outlook is negative
overall for the euro," said Antje Praefcke, currency strategist
at Commerzbank.
Against the yen, the euro lost 0.4 percent to 125.08
<EURJPY=R> after losing over 1.2 percent on Tuesday.
AUSSIE BUOYED
The Australian dollar remained close to an 11-week high of
$0.9288 <AUD=D4> set on Tuesday after the Reserve Bank of
Australia on Tuesday raised its cash rate to 4.25 percent and
flagged more hikes in the coming months.
"The Aussie is being helped by the RBA rate outlook versus
the low rate projection coming from the FOMC. Firm commodity
prices are also providing support," said Credit Agricole's
Bennett.
The Federal Reserve said subdued inflation trends were
likely to warrant an exceptionally low federal funds rate for an
extended period. [].
The Aussie topped 87.50 yen <AUDJPY=R> after breaching its
200-week moving average at 87.06 yen but pulled back later after
nearing resistance at 87.70, a 61.8 percent retracement of its
fall in 2007 from above 107.80 to 55.11 in late 2008.
The yen was steady at 93.78 per dollar <JPY=> with rising
short-term dollar rates and Treasury yields supporting the
greenback.
The Bank of Japan said after keeping its monetary policy
unchanged that the economy was picking up further, but analysts
say prolonged deflation is likely to keep the government
pressing the bank for more monetary easing. []
(Graphic by Scott Barber, Reporting by Neal Armstrong;
editing by John Stonestreet)
