* Euro hit by reported Greek comments
* U.S. jobless claims fall; inflation contained
* Philly Fed index rises in March
* Risk demand dwindles, high-risk FX edge lower (Adds comment, U.S. data)
By Gertrude Chavez-Dreyfuss
NEW YORK, March 18 (Reuters) - The euro weakened against the dollar on Thursday as uncertainty over a resolution to Greece's debt problems heightened after a report saying the country was not optimistic about aid from euro zone members.
An unidentified Greek official quoted in the report said Greece was increasingly pessimistic about the prospect for receiving assistance at a March 25 European Union summit and may seek International Monetary Fund aid during the April 2-4 Easter weekend.
Greek Finance Minister George Papaconstantinou, however, denied it may soon turn to the IMF for aid, saying all options for getting support are still open. [ID:nATH005287]
His comments did little to ease negative euro sentiment.
"We have seen some euro weakness just on the uncertainty over who will aid Greece...and this has spurred a little bit of risk aversion," said Camilla Sutton, senior currency strategist at Scotia Capital in Toronto.
Greece, battling with crippling debts, has said it is counting on EU leaders to approve a mechanism to help the country at next week's meeting.
But some countries -- especially Germany, the EU's biggest paymaster -- are wary of making concrete promises and analysts said the Dow Jones Newswires report suggested a rift between Greece and Germany may be deepening. For more see [ID:nSGE62H08W].
Comments from German Chancellor Angela Merkel saying on Wednesday the Greek crisis had landed the euro with its biggest challenge were also putting selling pressure on the euro zone single currency. [ID:nLDE62G16Q]
In mid-morning New York trading, the euro
"It's noteworthy that we're still in yesterday's ranges and even the euro has bounced off its lows. We have seen it stabilize and the euro is now trading within a band," Scotia's Sutton said.
The euro struggled as European shares <.FTEU3> retreated
from a 17-month closing high hit on Wednesday, while prices for
oil
The euro hit the day's low at $1.3648 in early European trade, but losses were limited due to suspected demand from Asian central banks around that level, traders said, while trendline support around $1.3640 also prevented more losses.
The dollar rose 0.4 percent against a basket of currencies
to 79.979 <.DXY>. The greenback was flat against the yen at
90.34 yen
Data showing a fall in U.S. weekly jobless claims, a rise in a U.S. Mid-Atlantic business index, and tame U.S. inflation spurred modest dollar selling versus the euro on slightly higher risk appetite, but overall markets were cautious and focused on Greece.
"The numbers came in so close to expectations that I think the market is going to focus primarily on risk sentiment instead," said Michael Malpede, market analyst, at Easy Forex in Chicago. "The Greek concerns and increased tension between the U.S. and China over the yuan are the driving factors."
Against the Canadian dollar