By Myra P. Saefong
SAN FRANCISCO (MarketWatch) -- The euro slipped below $1.38 late Tuesday,
following conflicting reports on the progress of the European Financial
Stability Facility bailout fund. Reports that Germany and France have agreed
to raise the EFSF to 2 trillion euros are "totally wrong," Dow Jones
Newswires reported late Tuesday, citing an official familiar with the
negotiations. "The rumor-mill was in full swing today causing widespread
volatility in the euro," said Kathy Lien, director of global research &
analysis at GFT. Also late Tuesday, Moody's Investors Service said it
downgraded Spain's government bond ratings to A1 from Aa2. The euro p EURUSD
-0.07% last bought $1.3737, down from a session high of $1.3817 and below
the $1.3741 seen late Monday in North American trade. The dollar index DXY -
0.07% traded at 77.146, little changed from 77.162 Monday.
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