LONDON—The euro fell against the dollar and the yen as worries about Spain and poor euro-zone activity data weighed on the common currency.
The single currency sank around a cent against the dollar to trade as low as $1.2413 while it also lost ground against the yen to trade as weak as ¥97.05 before eventually stabilizing.
The euro came under pressure right from the start of European trading after Spanish Budget Minister Cristobal Montoro said the European Union may need to act faster to support Spain, which doesn't have the option of a full blown bailout given the size of its economy.
Traders are awaiting news on a teleconference between Group of 7 finance ministers and central bankers on Tuesday and the European Central Bank meeting on Wednesday.
While any headlines from the G-7 call are expected to be the main focus, data published Tuesday highlighted the severe effect the fiscal crisis is having on Europe's economies and contributed to the euro selloff, said Michael Sneyd, currency strategist at BNP Paribas in London.
Survey data revealed that Spanish services fell in May at its fastest rate since November while overall activity in the euro zone's services sector as a whole continued to decline last month.
Official data also indicated that the volume of retail sales in April was 1.0% lower than in the previous month, a much sharper decline than the 0.2% fall estimated by economists. Orders for Germany's key manufacturing sector fell further than expected in April, reflecting disappointing foreign orders, official data showed.
The euro traded at $1.2438 ahead of the New York day, compared with $1.2500 late Monday in New York. The dollar was at ¥78.24, compared with ¥78.35.
Many U.K. traders are away from their desks for the final day of the Diamond Jubilee celebrations for Queen Elizabeth II.
