Dollar gains more vs euro after Treasury auction

NEW YORK, May 27 (Reuters) - The dollar extended gains against the euro on Wednesday after an auction of fresh five-year Treasury debt attracted solid demand, easing fears that U.S. deficits have soured foreigners on U.S. assets.

The euro fell to $1.3885 EUR=, down 0.7 percent on the day, in a bout of delayed selling following the five-year auction. It had been trading around $1.3920.

Treasury sold $35 billion in five-year Treasury notes, with indirect bidders, a proxy for foreign interest, comprising 44 percent of bids. (Editing by James Dalgleish)