* Euro slips amid uncertainty over aid package for Greece
* Risks of contagion could see euro slip further
* Sterling boosted by BOE, at 6-wk high vs euro
(Adds details, updates prices)
By Anirban Nag
LONDON, May 11 (Reuters) - The euro slipped on Wednesday, with risks to the downside on mounting uncertainty over whether euro zone officials would provide timely financial aid to debt-laden Greece and Portugal.
Sterling
The euro traded down 0.3 percent on the day against the dollar at $1.4358, in sight of a three-week low of $1.4254 hit on Monday. Asian sovereigns were keen to buy the euro on dips.
"Euro/dollar is being dominated by concerns about Greece and Portugal and the contagion concerns that triggered a sell-off last week could see the common currency fall further," said Adam Myers, senior forex strategist at Credit Agricole.
"If this trend continues, it can test lows of $1.4250 and then $1.4160." The euro had hit a low of $1.4156 on April 18.
Comments from a German deputy finance minister that euro zone officials will debate Greece's debt crisis next week but that no decision will be taken, added to uncertainty as markets fret over potential for a Greek debt restructure. [ID:WEA0239]
The euro had got a brief boost on Tuesday after a Dow Jones news agency report, citing a senior Greek government official as saying Athens expects to receive a new aid package totalling nearly 60 billion euros ($87 billion) in June. [ID:nLDE7490UN]
Although Greece denied the report, some market players expect additional funding sooner or later given fears that other options -- such as debt restructuring or even an exit from the euro zone by Greece -- would be more painful and cause more losses among European banks.
MORE WORRY
Greece is not the only source of worry for investors, with Finland delaying a parliamentary vote on the EU's Portugal bailout plan to Friday from Wednesday because the country's second-largest party remained undecided.
The Finnish parliament's approval is important because it, unlike others in the euro zone, has the right to vote on EU requests for bailout funds. The leader of Finland's third-biggest party reiterated his opposition to Portugal aid. [ID:nLDE74910V] [ID:nLDE74A0TX]
But traders are also weighing the euro zone's troubles with another big theme that has driven the market this year -- dollar weakness stemming from the Federal Reserve's reluctance to raise interest rates from near zero.
In contrast, the European Central Bank has raised rates in April and is expected to raise them further.
The dollar index <.DXY> was flat at 74.614, above a three-year low hit earlier this month of 72.696.
"It looks too early to call this a major reversal in the dollar," said Chris Turner head of fx strategy at ING. "Our view has been that with little to emerge in fresh policy from the Fed ahead of its June 22 meeting, the dollar-funded carry trade would be a dominant theme for the second quarter."
Stabilising commodity prices provided support to growth-linked currencies like the Australian dollar
Traders said some investors were increasingly expressing a bearish view on the euro by adding to bullish bets on the Australian dollar against the common currency
For column please click on [ID:nLDE7490D5].
(Additional reporting by Neal Armstrong, editing by Stephen Nisbet)