NEW YORK: The euro slipped slightly against the dollar Tuesday as markets waited for the outcome of Wednesday's crunch summit on the eurozone crisis.
While worries were that the Wednesday summit would not produce a comprehensive pact to resolve the Greek debt crisis and strengthen European banks, a dimmer picture of the US economy from businesses reporting quarterly results and a key consumer confidence survey cast a shadow over the dollar.
At 2100 GMT the euro was at $1.3904, down from $1.3930 late Monday.
"Hopes that Europe on Wednesday will outline a credible plan to strengthen the bloc's rescue fund, recapitalize shaky banks and reduce Greece's debt burden encouraged investors to bide their time noshing on riskier assets" said analysts at foreign exchange specialist Travelex.
"A plan that stops short of restoring investor confidence in Europe's ability to get ahead of the crisis would risk a pullback in market confidence, a scenario that would bode better for safer currencies like the dollar and yen."
The euro slipped to 105.78 yen from 105.97 yen. The dollar was virtually unchanged at 76.06 yen.
The dollar dropped to 0.8779 Swiss francs (0.8804 francs), while the British pound eased slightly to $1.5989 from $1.5994 Monday.
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