* US May core CPI posts big gain
* Euro slips more than 1 pct against the dollar
* Moody's places French bank ratings under review
(Adds reaction to U.S. data, updates prices, changes dateline, previous LONDON)
NEW YORK, June 15 (Reuters) - The euro fell broadly on Wednesday after euro zone ministers failed to reach agreement on how to tackle the Greek debt crisis and Moody's threatened large French banks with possible downgrades.
A report showed U.S. core inflation rose more than expected in May to post its largest increase in three years, bolstering the dollar, though events in Europe continued to dominate market sentiment.
The increased investor aversion to risk triggered by the debt crisis continued to push the euro
Traders said Asian sovereign names and leveraged and real money accounts were behind the selling.
Analysts said a Greek national strike against austerity measures was also keeping the euro lower as it highlighted the country's outrage against the government's efforts to reign in its debts, while ongoing divisions about a debt assistance plan underlined the possibility of the debt issues spreading to other euro zone countries.
"A resolution has to be met at some point in time," said John McCarthy, director of currency trading at ING Capital Markets. "Greece can't continue along its current path, we all know that. The question is what is the resolution."
In early New York trading, the euro was at $1.4283, hovering around the session low.
The single currency was down 0.4 percent against the safe-haven Swiss franc at 1.2150 francs
Euro zone finance ministers failed on Tuesday to reach agreement on how private holders of Greek debt should share the costs of a new bailout. [ID:nLDE75E03B]
Investor concerns were exacerbated as Moody's rating agency said it was reviewing the ratings of BNP Paribas SA, France's biggest bank, Societe Generale SA and Credit Agricole SA, because of their exposure to Greek debt. [ID:nL3E7HF0A4].
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Graphic on bank exposure to euro zone periphery debt
http://r.reuters.com/max89r
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The single currency was also hurt by a Financial Times report that the German-inspired Greek debt rescheduling plan could force euro zone governments to provide up to an extra 20 billion euros for the financial sector. [ID:nWNA1032]
BOLSTERING BEARISH BETS
Options traders reported increasing demand for bearish bets on the euro via put options as feuding over Greece's rescue continued.
Risk reversals showed increasing demand for bets on a lower euro against the dollar. The 25 delta one-month euro/dollar risk reversal
"Our option desk is seeing a continuation of the large scale euro put buying they witnessed yesterday, principally in the one-month and two-month area, with $1.40 strikes proving very popular," a trader at a U.S. bank in London said.
The dollar index <.DXY>, which tracks its performance against a basket of currencies, was up 1 percent at 75.104.
However, concerns over the failure of lawmakers and officials to lift the U.S. debt ceiling are expected to limit dollar gains.
U.S. Federal Reserve Chairman Ben Bernanke warned on Tuesday the United States could lose its AAA credit rating and the dollar's status as a reserve currency could be damaged if there was no quick resolution on raising the debt limit. [ID:nN14186233]
The dollar was up 0.5 percent at 80.82 yen
The Australian dollar