The euro fell to its lowest price against the dollar since early May this morning, extending a three-week losing streak as investors fled global bond markets in favor of rising US equities.
The single currency also tumbled to a seven-week low against the yen when Tokyo stocks closed at their highest since August.
Analysts said these gains in global equity markets have triggered a sell-off in euro zone bonds, which had propped up the euro in the first half of 2003.
In early US dealings, the euro bought $1.1353, down 1.21 per cent on the day. The euro was down 1.41 per cent against the yen, trading near 133.85 yen.
Markets are also watching to see if a further rise in the Nikkei 225 Index could put downward pressure on the dollar against the yen, but there is still a wariness of Japanese intervention to soften the yen in an effort to keep exports competitive.
That wariness is keeping the dollar in an extremely narrow range against the yen, which is rallying against other European crosses.
