European session: euro fell

The euro weakened to a more than two-year low against the dollar, falling below $1.21, as concern mounted that European leaders are failing to gain control of the region’s debt crisis.

The 17-nation currency dropped to less than its lifetime average versus the dollar, and slid to an 11-year low against the yen. Japan’s currency strengthened against all 16 of its major counterparts as investors sought safer assets. Six Spanish regions may ask for aid from the central government, El Pais reported, propelling the nation’s 10-year bond yield to a euro- era high.

The yield on Spain’s 10-year bond jumped to as much as 7.565 percent, the highest since the euro was created, while the cost of insuring against default on the nation’s sovereign debt also soared to a record before it auctions bills tomorrow.

The shared currency also dropped before the troika of Greece’s international creditors -- the European Commission, the European Central Bank and the International Monetary Fund -- arrive in Athens tomorrow amid doubts the nation will meet its commitments and reluctance among euro-area states to put up more funds should it fail.

The IMF will stop paying rescue aid to Greece as it is already clear the nation will not be able to fulfill its promise to cut debt to 120 percent of annual economic growth in euro terms by 2020, Der Spiegel magazine reported, citing unidentified EU officials.

EUR / USD: pair dropped to $ 1.2080

GBP / USD: pair fell to $ 1.5516

USD / JPY: a pair in the session fell to Y77.93 low and then rose to the level of Y78.30