FOREX NEW YORK COMPANIES

* Details of bailout deal remain unclear

* China data better than feared, also helps risk assets

By Jessica Mortimer

LONDON, June 11 (Reuters) - The euro rose on Monday after Spain secured aid for its banks, allaying some of the concerns about the country's debt problems, but the currency's gains were seen limited as investors were cautious ahead of elections in Greece at the weekend.

The euro zone agreed to lend its fourth-largest economy up to 100 billion euros to reassure investors and prevent a run on banks.

But traders and analysts said the details of the bailout deal were still unclear and that concerns would remain about Spain's large debt burden given the country's economy remains stagnant.

The euro rose more than 1 percent to hit a three-week high of $1.2672 in Asian trade, pulling away from a near two-year low of $1.2288 hit earlier this month.

However, it ran into selling in the European session and was last up 0.7 percent at $1.2611.

"It is positive that politicians have reacted so quickly and ahead of the Greek elections, and this will hopefully contain the risks within the Spanish banking sector," said Niels Christensen, currency strategist at Nordea in Copenhagen. "But it is not going to boost the Spanish economy so there is still a mountain to climb to control the debt situation.

"The euro will continue to be vulnerable ... poor economic data and low growth or recession is the worst scenario for dealing with a debt crisis".

Technical analysts said further gains could see the euro rise towards $1.2837, its 50 percent retracement of its decline from March peak of $1.3386 to June 1's two-year low. However, many traders were sceptical and said it was unlikely to rise beyond $1.2750.

Against the yen, the single currency rose to 100.90 yen , its highest level in more than two weeks, before retracing to trade up 0.8 percent at 100.25 yen.

"Euro zone leaders rose to the occasion. They had no choice. The Spanish bailout means Europe will not permit 'runs' to sink their banking system," said David Kotok, chairman of Cumberland Advisors.

Better-than-expected data out of China over the weekend also boosted riskier assets, helping the euro.

The data was not as bearish as many traders had feared following Beijing's first interest rate cut since the global financial crisis on Thursday.

GREEK ELECTIONS

Traders warned optimism would be temporary given caution before Greek elections on June 17, where the result could intensify worries about whether Greece could leave the euro. Parties that support and oppose the debt-stricken country's international bailout are neck-and-neck in opinion polls.

With the terms of the Spanish deal still not clear, there were also worries that other countries which have received a bailout -- Greece, Portugal and Ireland -- may protest that Spain was offered better terms than they were.

"If the euro zone will have much looser conditions for Spain, then countries like Ireland will probably call for the same conditions as well. It's not going to be easy to decide on those details," said Seiya Nakajima, chief economist at Itochu Corp in Tokyo.

Underscoring the prevailing bearish sentiment, bets against the euro surged to a record high in the week to June 5, while net long U.S. dollar positions extended gains, according to the Commodity Futures Trading Commission.

"I don't think people will take off short euro bets ahead of the weekend and the Greek elections," Nordea's Christensen said.

The higher-yielding and riskier Australian dollar was up 0.6 percent against the U.S. dollar at $0.9968.

The dollar index was down 0.6 percent at 82.022 but above an earlier 2-1/2-week-low of 81.785. (Additional reporting by Antoni Slodkowski in Tokyo; Editing by Toby Chopra)