Dollar falls from 10-month highs against euro

NEW YORK, March 27, 2010 - The dollar lost some of its recent gains against the euro on Friday, as traders coyly welcomed an EU deal to provide Greece with a fiscal safety net.

The single European currency rose to 1.3410 dollars at around 2300 GMT, from 1.3277 dollars a day earlier.

"On the last trading day of what has been an exceptionally volatile week, the dollar gave back some of its recent gains against the euro," said Kathy Lien, director of currency research at Global Forex Trading.

The European single currency climbed away from 10-month lows against the dollar reached on Thursday before the 16 eurozone countries agreed to offer Greece loans in combination with the International Monetary Fund. But there were mixed views about how good the EU deal was. "Although the bailout was welcomed by the financial markets, the news of the IMF's involvement was not good for the euro," said Phil McHugh, senior executive dealer at Currencies Direct, a London-based trading company.