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FOREX-Euro dips on delay in Greek debt deal approval 

  • Deadline for 2nd Greek bailout already past -EU Commission
  • Euro seen vulnerable to testing back below $1.30
  • Dollar hits 1-week high vs yen on rise in U.S. yields

NEW YORK, Feb 6 (Reuters) – The euro weakened against the dollar on Monday, after the failure of Greek coalition parties to approve the terms of a new bailout package rekindled worries about a chaotic default that could spread to other debt-ridden, euro zone countries.

A European Commission spokesman said Greece had already gone beyond the deadline for finalizing talks on the second financing package from the euro zone and the International Monetary Fund, and Athens needed urgently to take decisions.

Greece’s coalition members must agree to painful terms of a new bailout worth 130 billion euros before euro zone finance ministers next meet. Continued failure to reach a deal would leave the prospect of an unmanaged Greek debt default when bond repayments fall due in March.

A meeting of Greek political leaders to discuss reforms under the package has been postponed by a day to Tuesday.