Euro falls vs. dollar on Greek political turmoil

[May 09, 2012]  NEW YORK (AP) -- The euro is falling against the dollar on growing uncertainty about Greece's government and whether the country will continue to be part of the euro.

After a weekend election, Greek leaders failed to create a new government Tuesday. One party leader said that Greece's commitment to budget cutting is no longer valid because voters rejected those deals.

Those comments are worrying traders since Greece needs to stay on its austerity program to get it next batch of bailout money. Going off the program could force Greece out of the eurozone.

The euro fell to $1.3007 in afternoon trading Tuesday from $1.3050 late Monday.

In other trading, the British pound fell to $1.6150 from $1.6184.

The dollar fell to 79.79 Japanese yen from 79.94 yen.

[Associated Press]

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