The euro edged lower against the dollar on Thursday in volatile trading as worries over US budget negotiations outweighed generally positive US economic data that had earlier boosted the market's appetite for risk-taking. By midday, the euro was down slightly at $1.3224 after trading higher for most of the session. On Wednesday, the euro hit an 8-1/2 month high. Against the yen, the euro drifted lower to 111.61. The dollar by midday was flat at 84.36 yen.

Copyright Reuters, 2012