Euro slides as concerns of Greek economy intensify

THE euro slipped towards last week's nine-month low against the dollar yesterday as investors grew increasingly nervous about the absence of any quick bailout package for Greece from eurozone finance ministers.

Concerns were also intensifying over the debt restructuring of state-owned conglomerate Dubai World, which pushed the cost of insuring Dubai sovereign debt against default 11-month highs.

At a meeting in Brussels, eurozone finance ministers exerted more pressure on Greece to implement planned budget deficit cuts and some stressed that Greece itself must solve its own problems.

World stocks held steady in trading thinned by holidays in China and the United States. They posted its first weekly gain in a month last week, supported by expectations interest rates will stay low, especially in the euro zone where governments are coming under pressure to withdraw fiscal support.

The FTSEurofirst 300 index of European shares gained 0.3 per cent with banks such as HSBC and Barclays leading the way. Emerging stocks rose 0.3 per cent.