The euro slumped against the dollar on Friday as investors sought the safe-haven US currency amid uncertainty about international assistance for debt-plagued Greece.
In morning London trade, the European single currency tumbled as low as 1.3560 dollars. It later stood at 1.3567 dollars, down from 1.3603 dollars in late New York trade on Thursday.
Against the Japanese currency, the dollar rose to 90.43 yen from 90.35 yen late on Thursday.
"The uncertainty regarding possible aid for Greece continues to create pressure," said Commerzbank analyst Ulrich Leuchtmann.
Greece warned Thursday it could turn to the International Monetary Fund for help unless European leaders offered financial aid at the upcoming EU spring council meeting on March 25-26.
Greek Prime Minister George Papandreou urged the European Union to help as the interest rate Athens pays to borrow money on the financial markets shot up amid investor uncertainty over Europe's willingness to help.
Leuchtmann said "time is running out as Greece will have to find approximately 20 billion euros (27 billion dollars) on the capital markets over the next two months to redeem old bonds.
"So even Papandreou himself has mentioned the IMF and is urging the Europeans to find a solution at the summit on March 25-26 at the latest."
The German government sees aid to Greece from the International Monetary Fund as an option in resolving its debt problems, Chancellor Angela Merkel's spokesman said on Friday.
"The German government does not rule out aid from the IMF if Greece requests it," spokesman Ulrich Wilhelm said at a regular news conference after reports that Berlin was concerned European aid could break German and EU law.
He stressed that Athens, whose fiscal woes have pushed the eurozone into its biggest crisis since the single currency's inception in 1999, had not yet made any request for such aid.
German Finance Minister Wolfgang Schaeuble earlier this month floated the idea of a European version of the IMF, believing that the 16-nation eurozone should solve problems without resorting to outside help.
CMC Markets analyst Michael Hewson predicted that the euro would continue to be weighed down by the lack of a European bailout -- and the prospect of IMF help for Greece.
"Without a proper delivery mechanism in place to instigate such a bailout, and the fact that EU regulations specifically prohibit such things, the euro will continue to be weighed down on fears of IMF intervention.
"This was something that a few weeks ago was considered unmentionable but appears to be now accepted as a possibility especially in Germany as a realistic option.
"As such, the euro will remain under pressure and a break below the 1.3480-dollar key support could well see further declines towards 1.3200 dollars."
In London on Friday, the euro was at 1.3567 dollars against 1.3603 dollars on Thursday, at 122.69 yen (122.90), 0.8961 pounds (0.8924) and 1.4343 Swiss francs (1.4398).
The dollar stood at 90.43 yen (90.35) and 1.0572 Swiss francs (1.0575).
The pound was at 1.5140 dollars (1.5242).
On the London Bullion Market, the price of gold was virtually unchanged at 1,122.70 dollars an ounce, compared with 1,122.75 dollars an ounce on Thursday. - Sapa-AFP
