LONDON, May 11 (Reuters) - The euro fell on Tuesday as the relief rally unleashed by an emergency aid package to prevent the spread of a euro zone debt crisis dissipated and the focus switched back to structural problems plaguing the bloc.
European Union finance ministers, central bankers and the International Monetary Fund hammered out an emergency package of loan guarantees to euro zone members over the weekend to try to shore up sentiment in its bond markets and the euro. [ID:nSGE6490HH]
The "shock and awe" plan initially boosted sentiment, propelling the euro EUR= close to $1.31 on Monday and off a 14-month trough of $1.2510 hit on trading platform EBS last week when investors had feared the sovereign credit crisis could spread from Greece to other euro zone countries.
At 0930 GMT on Tuesday, the euro had slipped back to trade with losses of around 0.8 percent at $1.2675, with traders noting sales from macro accounts. Poor liquidity was said to be exacerbating moves.
"Monday was a relief rally and now it's back to reality as people are looking at the facts. Greece has to consolidate its finances and the euro is still not attractive," said Antje Praefcke, currency strategist at Commerzbank.
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