NEW YORK (AP) -- The euro is falling against the dollar on worries that Greece might not reach a deal with its creditors.

A deal is needed in order for Greece to receive its next bailout payment and avoid a default. A default could hurt Europe's financial system and trigger a financial panic around the world.

The euro fell to $1.2999 in morning trading Tuesday from $1.3015 late Monday.

Greece wants its private creditors to swap their Greek government bonds for new ones that are worth 50 percent less. But they haven't agreed on an interest rate for the bonds.

In other trading, the British pound rose to $1.5599 from $1.5559. The dollar rose to 77.70 Japanese yen from 77 to 0.9289 Swiss franc from 0.9276 and to 1.0102 Canadian dollar from 1.0082.

(COPYRIGHT 2012 BY THE ASSOCIATED PRESS. ALL RIGHTS RESERVED.)