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* Euro within half a U.S cent of 14-month low vs dlr
* Option-related stop-losses hit through $1.2600
* Fiscal tightening requirements weigh on single currency
* Euro hits record lows vs Swiss franc
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By Neal Armstrong
LONDON, May 13 (Reuters) - The euro fell to a one-week low on Thursday, as looming fiscal tightening requirements in the euro zone outweighed the benefits of an aid package aimed at shoring up euro zone bond markets.
A $1 trillion rescue deal hammered out at the weekend by global policymakers had eased investor worries a Greek sovereign debt crisis will spread.
However, concerns about the ability of fiscally weaker states to make necessary budget cuts and about the impact on growth continue to weigh on the euro.
"Fiscal tightening in the euro zone is going to be broad-based and this is negative for the euro," said Ian Stannard, senior currency strategist at BNP Paribas.
Passage of the rescue deal has boosted risk appetite this week, providing a temporary floor to the single currency.
But by 0925 GMT, the euro had given back earlier gains to trade down 0.3 percent versus the dollar at $1.2580, bringing last week's 14-month low of $1.2520 back into focus.
Traders said short-dated option-interest at $1.2600 had been targeted in holiday-thinned trade with stops triggered underneath. More stops were said to be lurking under $1.2550.
"There are question marks over the austerity measures required in the southern European states and that makes the euro vulnerable," said Jeremy Stretch, currency analyst at Rabobank.
The euro fell 0.5 percent versus the yen to 117.00 yen as European stocks turned negative. Euro/yen fell to an eight-year low of 110.49 yen on trading platform EBS last week as global stocks tumbled on risk aversion related to the euro zone debt crisis.
The single currency hit a record low versus the Swiss franc of 1.3997, according to EBS.
The dollar was up around 0.1 percent against the yen at 93.28 yen. Versus a basket of currencies, the greenback was up 0.3 percent at 85.038. The index hit a 1-year high of 85.268 last week.
The Australian dollar trimmed gains to trade up 0.5 percent at $0.8980 versus the U.S. dollar. Australian employment data came in stronger than expected earlier, pushing the currency back above $0.9000.
Analysts said interest rate rises from the Reserve Bank of Australia may be limited by external factors, potentially capping further Aussie gains.
"Despite the RBA's increasing concerns over the inflation outlook and a tightening in the labour market, we think global factors dominate and expect the RBA to stay on the sidelines for the next couple of months," said Su-Lin Ong, senior economist at RBC Capital.
Sterling fell 0.3 percent versus the dollar to $1.4780, hit by a fall in risk appetite and as UK trade data showed the deficit widening more than expected in March.
(Editing by Toby Chopra)