The euro extended losses versus the dollar to trade below $1.26 on Tuesday as U.S. stock futures fell to a session low. The euro traded as low as $1.2587, the lowest level since early December. It was last down 1.4 percent against the dollar at $1.2591 . The euro was hit hard by increasing worries about the prospect of a deep and prolonged recession in Eastern Europe because banks from the euro zone have some of the heftiest exposure to the region.

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