Euro slides on Greek worries

The euro traded near eight-month lows Thursday, as currency traders were left unimpressed by European leaders' promises to help Greece avoid defaulting on its debt.

The euro traded down 0.88 of a cent to $1.37 US after currency markets had looked for more specific plans on dealing with potential default not only by Greece but also by Spain or Portugal on their huge debts.

At a summit of 27 European Union leaders in Brussels, EU president Herman Van Rompuy said the 16 countries that use the euro promised to take "co-ordinated measures" if necessary to help Greece. Van Rompuy gave no firm offer of financial aid and insisted that Greece hadn't asked for any.

"Euro-area members will take determined and co-ordinated action if needed to safeguard stability in the euro zone as a whole," he told reporters, reading a statement.

Analysts said markets were disappointed. Neil Mackinnon, global macro strategist at VTB Capital, commented: "It just looks like a pledge of solidarity, but no actual details of a program, which is why the euro is still in the doldrums."

Euro-zone governments undertake to limit their budget deficits to no more than three per cent of gross domestic product, because overspending can undermine the shared currency. Last year, Greece had a deficit equal to 12.7 per cent of its total economic output.

Greek workers shut down schools, grounded flights and walked out of hospitals Wednesday to protest austerity measures, and on Thursday taxi drivers in Athens went on strike. A much broader national strike is planned for Feb. 24.