Growing fears over the European debt crisis kept pressure on the euro as it hovered around 11-month lows in Asian trade today.
The euro was sitting at $1.2985 this morning near its lowest levels since January.
The widening euro zone problem triggered a sell-off of commodities, including gold and crude oil, as Italian bond yields soared yesterday. Rome paid its highest interest rate since the creation of the euro, raising €3 billion in five-year bonds at a rate of 6.47%.
Meanwhile, the Indian rupee continued its downward spiral against the dollar today, hitting another record low due to concerns over euro zone debt crisis and weak domestic data.
The Indian unit - Asia's worst performing currency this year - was trading at 54.21 to the dollar, which has now gained more than 21% against the rupee since March. India's central bank has said it will act to prevent a further drop in the rupee, which has been hit by global financial uncertainty, as investors abandon riskier emerging market currencies for safe havens.
