LONDON (AFP) - The euro slipped against the dollar Thursday on concerns the Greek debt crisis could affect other eurozone nations and expectations the Federal Reserve may tighten monetary policy sooner than thought, analysts said. The European single currency fell to 1.3571 dollars from 1.3598 dollars late in New York on Wednesday. Against the Japanese currency, the dollar dropped to 90.80 yen from 91.23 yen on Wednesday. The growing evidence of a relatively slower economic recovery in the eurozone suggests any upside in the euro will be limited, predicted Credit Agricole analyst Mitul Kotecha. Last week, the euro slid to a nine-month low of 1.3532 dollars, hit by worries that other eurozone countries such as Portugal, Ireland, Italy, and Spain could suffer similar fiscal problems as Greece. Since then it has rebounded slightly because the chances of a worst case scenario of Greece defaulting on its debt repayments or pulling out of the euro area appear to have diminished, Kotecha said. But a report in the Wall Street Journal that derivative contracts taken out by Italian municipalities could threaten local public finances for decades reignited jitters that Greeces fiscal woes could spread across Europe. Speculation is growing that Greece isnt the only fiscally embattled country in Europe, Hiroshi Maeba, a senior trader at Nomura Securities, told Dow Jones Newswires. I expect the euros downtrend may continue. EU finance ministers have called on Athens to prepare drastic action by March 16 to rein in its bulging public deficit the highest in the 16-member eurozone. Radical new cost-cutting and tax-raising measures are set to be imposed under newly agreed European Union voting rules. The dollars rise has also stemmed from a market perception that the Federal Reserve was moving closer to tightening credit. The central bank has held its key federal funds rate at between zero and 0.25 percent for more than a year in a bid to support recovery from recession. According to minutes from last months Federal Open Market Committee policy meeting released Wednesday, the central bank discussed the prospects of unwinding extraordinary stimulus measures. Traders were meanwhile awaiting US producer price data due Thursday. Investors were also digesting a decision by Japans central bank to keep its key interest rate unchanged at 0.1 percent. The Bank of Japan on Thursday said the economy was picking up but added that beating deflation remained a critical challenge. In London on Thursday, the euro was changing hands at 1.3571 dollars against 1.3598 dollars on Wednesday, at 123.23 yen (124.06), 0.8708 pounds (0.8676) and 1.4656 Swiss francs (1.4666). The dollar stood at 90.80 yen (91.23) and 1.0800 Swiss francs (1.0782). The pound was at 1.5583 dollars (1.5670). On the London Bullion Market, the price of gold fell to 1,103.55 dollars an ounce from 1,119 dollars an ounce on Wednesday.