The euro tumbled to a four-month low against the dollar on Tuesday with global markets plagued by anxiety over whether Greece's debt crisis could spread to larger economies such as Italy and Spain.
The single currency traded at $1.3958 in Tokyo trade, slipping from $1.4029 in New York Monday and at one point hitting a four-month low of $1.3932.
The euro bought 111.82 yen, falling from 112.51 in New York. The dollar was at 80.11 yen, easing from 80.24 yen.
The euro fell even as eurozone finance ministers met in Brussels to discuss a new rescue package for Greece, as fears mounted that Italy or Spain were next after both nations saw their borrowing costs soar on Monday.
The ministers said they would consider measures to 'enhance' the European Financial Stability Facility, the 440 billion euro ($617.1 billion) fund set up to lend to eurozone nations.
International Monetary Fund managing director Christine Lagarde said Monday that Greece's efforts to close its budget gap have gone a long way but are 'not sufficient'.
Lagarde also said the turmoil that has raised fears of an Italian financial meltdown is 'essentially market driven' but said Italy must implement fiscal consolidation and austerity measures to reduce the country's deficit.
Source : New Age
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