The euro has slipped on the foreign exchange market ahead of an upcoming summit of European leaders due to take place today (March 11th).
Crisis aversion is set to be on the agenda of the upcoming summit, which follows yesterday's downgrade by Moody's of Spain's debt to Aa2 with negative outlook.
Growing concerns over events in North Africa and the Middle East are fuelling a drive to risk aversion, which is further supporting the dollar against riskier assets such as the euro.
The belief that there will be a failure to reach an agreement over the European debt crisis is also supporting a drive from the currency.
Concern over the eurozone's peripheral economies is growing, with the ability of Greece and Ireland to repay their debts affecting the currency once again.
Germany has reiterated its position that weaker eurozone members need to reform their economies in order to help provide a more stable outlook for the euro.
