* Euro falls vs dollar as uncertainty over Greece continues
* Analysts say EU aid package looking unlikely
* Euro falls to record low vs Swiss franc
(Adds comments, details. Updates prices.)
By Vivianne Rodrigues
NEW YORK, March 23 (Reuters) - The euro fell against the
dollar on Tuesday over concerns euro zone policy makers are
unlikely to provide a rescue package for Greece at a summit
later this week.
Worries over Greece's ability to win financial aid to help
repay debt is keeping the euro close to a three-week low. That
supported some safe-haven flows into the U.S. dollar.
Disenchantment with the European single currency was
compounded by its decline to an all-time low versus the Swiss
franc.
Traders said pressure on the euro will continue ahead of a
summit of European Union leaders on Thursday and Friday.
The region's leaders are at odds on how and whether to
provide help to the indebted nation. Chancellor Angela Merkel,
facing fierce opposition in Germany to any bailout, said there
would be no decision on Greek aid at the EU summit, party
sources said on Tuesday. For details see, []
Failure to reach a quick resolution over Greece, combined
with lackluster euro zone growth, could prevent the European
Central Bank from raising interest rates until well into next
year and add to selling pressure.
"The risk is for further weakness in the euro if nothing
concrete comes out of this summit in terms of financial help to
Greece," said Joe Manimbo, a currency trader at Travelex Global
Business Payments, in Washington D.C.
In mid-morning trading in New York, the euro was down 0.1
percent against the dollar <EUR=> at $1.3544, after trading as
low as $1.3477 earlier. The single currency hit a three-week
low around $1.3461 on Monday.
A report in the U.S. showing sales of previously owned
homes fell less than expected in February gave a boost to risk
sentiment and took some of the selling pressure off the euro.
[].
Some analysts said the euro's 5 percent drop against the
dollar since the start of the year may be overdone.
The housing data "gives a bit of a boost to the euro based
on improved risk sentiment," said Brian Dolan, chief currency
strategist, at Forex.com, in Bedminster, New Jersey.
The euro fell as low as 1.4287 <EURCHF=> against the Swiss
franc, breaking the previous low, according to Reuters data. It
was last at 1.4301, down 0.3 percent on the day.
The Swiss National Bank has been intervening in forex
markets over the past year as part of its efforts to protect
the Swiss economy and traders were watching just how much the
central bank will allow the currency to climb.
A spokesman for the Swiss National Bank declined to comment
on the move.
"If you look at the evolution of the SNB's language it
suggests they're not so worried about it (Swiss franc
appreciation) any more," said Geoffrey Yu, currency strategist
at UBS AG.
NO RESPITE FOR EURO
Greek Finance Minister George Papaconstantinou said on
Tuesday Greece wants a European solution to its debt crisis and
expects positive results from the EU summit. []
But European Central Bank vice-president nominee Vitor
Constancio added fuel to the fire, saying IMF loans would not
be enough to satisfy Greek needs [].
"It is looking increasingly unlikely that there will be an
EU aid package for Greece which leaves the euro in a negative
position," said Ian Stannard, Senior Currency Strategist at BNP
Paribas.
"I expect a test of this year's low at $1.3435, and if that
breaks, a quick move toward $1.3100," he added.
(Additional reporting by Nick Olivari, Steven Johnson in
New York and Neal Armstrong in London; Editing by Andrew Hay)
