Early trade: Euro falls versus dollar

The euro fell against the dollar on Friday after most eurozone banks passed regulatory stress tests, but analysts worried the tests weren't strict enough to reveal the true health of the sector. All French banks and all but one German bank were judged to have sufficient capital cushions to withstand potential losses on their sovereign debt holdings. Seven of 91 banks failed the tests, including ones in Greece and Spain, but analysts said those results were expected.
The euro initially rose above $1.29, erasing losses on the day. But the currency resumed its decline as results trickled in and was last at $1.2820, down about 0.6 percent. It fell 0.2 percent to 111.84 yen, while the dollar was up 0.4 percent at 87.24 yen.