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Euro dips against dollar on Greece default worries

The euro dipped Tuesday against the dollar as the possibility of a Greek debt default continued to weigh on the single currency.

Near 2100 GMT, the euro was lower against the dollar, as well as the British pound and the Swiss franc. The single currency rose against the Japanese yen.

"The potential for extreme fallout from Greece in merely three days is weighing heavily on the minds of investors as the days and hours pass," said a note from Forex.com analyst Neal Gilbert.

Mayors across Greece lashed out at a government decree ordering them to hand over their cash reserves to help pay some 3 billion euros in civil servants' wages and debt servicing costs in the next three weeks.

Eurogroup president Jeroen Dijsselbloem offered a glimmer of hope on the debt negotiations with Athens on Tuesday, saying some progress had been made.

The EU has pressed Athens to detail a programme of acceptable reforms by Friday, when eurozone finance ministers are due to meet in Latvia's capital Riga.

But Athens has been resisting reforms demanded by creditors.

"The dire shape of Greek finances has come under closer scrutiny this week with Athens running dangerously low on time and cash to remain fiscally afloat," said Joe Manimbo, senior market analyst at Western Union Business Solutions.

"Without an agreement soon to access remaining bailout funds, Greece could soon default on its debts, a scenario that could get it expelled from the euro."