The euro slid to a three-week low versus the dollar on Thursday as officials in Europe considered delaying a bailout package for Greece even as the indebted country met demands set by international lenders. Several EU sources said on Wednesday the euro zone is examining ways of holding back parts or even all of the bailout programme until after elections expected in Greece in April while still ensuring it avoids a disorderly default.
"The euro is under pressure as the talk of delaying the bailout package is raising uncertainty. It's not clear whether Athens will be able to secure funds needed to redeem bonds on March 20," said Sumino Kamei, senior analyst at Bank of Tokyo-Mitsubishi UFJ.
Greece has 14.5 billion euros of debt repayments due that day - a sum it cannot pay without the help of international lenders. Traders are unsure how policymakers would be able to hold back bailout funds beyond then without triggering a disorderly default.
That uncertainty prevented the euro benefiting from news that party leaders in Athens have met the final two demands set by the country's international lenders to seal the bailout. The country is now pinning its hopes on a meeting of euro zone finance ministers on Monday.
The euro fell 0.4 percent to $1.3020, slipping below important support including a 38.2 percent retracement of its rally this year at $1.3056, and its 55-day moving average of $1.3052. The euro has a cluster of support around $1.2970, including a 50 percent retracement of the same rally at $1.2974, the daily Ichimoku charts' kijun line at $1.2973 and its cloud bottom at $1.2965.
The euro fetched 102.03 yen, unable to clear important resistance including the 90-day average at 102.74 and Ichimoku cloud top at 102.79. The greenback hovered below a 3-1/2 month high of 78.67 yen hit on Wednesday, stabilising at 78.42 yen. The Australian dollar jumped following data showing Australian employment climbed by 46,300 jobs in January, surging past expectations of a rise of 10,000. But as doubts about the bailout package for Greece undermined risk assets, the currency slipped 0.3 percent to stand at $1.0661. The New Zealand dollar dropped 1.0 percent to $0.8256.