LONDON, Dec 20: The euro eased against the dollar on Thursday as economic and political woes in Argentina mounted, causing some jitters in Spain and South Africa but a muted reaction elsewhere.

The single European currency slipped to 0.8979 dollars from 0.9007 dollars overnight in New York.

The dollar stood at 128.15 yen from 12.08 in New York.

Markets on the whole took in their stride news that Argentina had declared a state of emergency and Economy Minister Domingo Cavallo had reportedly quit, as public unrest over unpopular fiscal austerity measures grew.

The euro was being traded at 0.8979 dollars from 0.9007 late Wednesday in New York, at 115.04 yen (115.38), 0.6219 pounds (0.6207), and 1.4686 Swiss francs (1.4756).

The dollar was at 128.15 yen (128.08) and 1.6358 Swiss francs (1.6380).—AFP