* Euro falls vs dollar as uncertainty over Greece continues
* Analysts say EU aid package looking unlikely
* Greece worries, risk aversion support dollar
(Updates prices; amends lead, adds quote)
By Neal Armstrong
LONDON, March 23 (Reuters) - The euro fell against the dollar on Tuesday as uncertainty over possible support for Greece continued in the run-up to a summit later this week.
Growing concerns that EU leaders may not reach a decision this week kept the euro close to a three-week low hit on Monday and fanned risk aversion, supporting safe-haven flows into the U.S. dollar.
German Chancellor Angela Merkel, facing fierce opposition in Germany to any bailout of the highly indebted country, said on Monday there was no need to discuss an aid mechanism at an EU summit starting on Thursday. [ID:nLDE62L257]
"It is looking increasingly unlikely that there will be an EU aid package for Greece which leaves the euro in a negative position," said Ian Stannard, Senior Currency Strategist at BNP Paribas.
Greek Finance Minister George Papaconstantinou said however on Tuesday Greece wants a European solution to its debt crisis and expects positive results from the EU summit. [ID:nATH005305]
At 1103 GMT, the euro was down 0.4 percent against the dollar <EUR=> at $1.3500, not far from Monday's three-week low around $1.3461.
The dollar index <.DXY>, a measure of its performance against six other currencies, rose 0.2 percent to 80.820, edging closer towards an eight-month high of 81.342 set in February.
NO RESPITE FOR EURO
European Central Bank vice-president nominee Vitor Constancio added fuel to the fire, saying IMF loans would not be enough to satisfy Greek needs [ID:nWLB0642].
"I expect a test of this year's low at $1.3435, and if that breaks, a quick move towards $1.3100," added BNP Paribas' Stannard.
Against the Swiss franc, the euro <EURCHF=> slipped to a low of 1.4317 francs, having earlier spiked briefly to a high of 1.4371 after Swiss National Bank Chairman Philipp Hildebrand pledged again to counter any excessive Swiss franc rise. [ID:nLDE62M0D9]
"If you look at the evolution of the SNB's language it suggests they're not so worried about it (Swiss franc appreciation) any more," said Geoffrey Yu, currency strategist at UBS.
Sterling fell after UK inflation data came in lower than expected [ID:nONS004883]. The pound dropped to a session low versus the dollar <GBP=D4> of $1.4986, while the euro <EURGBP=D4> moved above 90.00 pence.
The dollar edged up 0.2 percent to 90.33 yen <JPY=> after dipping as far as 89.83 yen on Monday when Tokyo was shut.
However, it stayed roughly in the middle of an 88-92 yen trading range seen since mid-January. (Additional reporting by Jessica Mortimer; editing by Stephen Nisbet