The euro declined against the dollar on Thursday after troubled economy Cyprus was given a deadline by the European Central Bank over its bailout deal.

Also pushing the currency lower was the news that Eurozone manufacturing data showed its fastest rate of contraction in three months, dashing hopes of an economic recovery.

The single currency fell to $1.2914 compared to $1.2933 late Wednesday.

The European Central Bank has warned that it will cut off emergency liquidity for Cypriot banks on Monday unless a deal is reached to shore up the country's ailing banks after a proposal for a levy on bank deposits was thrown out earlier this week.

A composite index based on a survey of purchasing managers fell to 46.5 from 47.9 in February, according to Markit Economics.

The ICE dollar index, which measures the greenback against a basket of six other major currencies, fell to 82.743 from 82.852 late the previous day.

The WSJ dollar index, which measures a slightly wider range of currencies, dropped to 73.50 from 73.71 the prior evening.

Meanwhile, the pound climbed from $1.5102 on Wednesday to $1.5170 last night.

NR

Related share prices