By Yasuhiko Seki and Ron Harui March 25 (Bloomberg) -- The euro fell to a 10-month low against the dollar on concern a meeting of European Union leaders starting today will fail to make any progress on a financial aid plan for Greece. The 16-nation currency declined versus 14 of its 16 major counterparts after Fitch Ratings cut Portugal’s credit rating yesterday, spurring concern other European nations will also face downgrades. The yen rallied from a 10-week low against the dollar on speculation Japanese exporters took advantage of the currency’s biggest slide this year to bring home funds before the nation’s fiscal year ends next week. “Concerns over sovereign problems at some EU members will continue to weigh on the euro,” said Takeshi Makita, senior economist in Tokyo at Japan Research Institute Ltd., a unit of Sumitomo Mitsui Financial Group Inc., Japan’s third-largest banking group. “The EU seems to be lacking the ability to resolve these problems on its own, hurting confidence in the region’s currency. The euro dropped to $1.3293 as of 6:01 a.m. in London from $1.3315 yesterday in New York after falling to $1.3284, the weakest since May 7. The single currency weakened to 122.36 yen from 122.89. The yen climbed to 92.04 per dollar from 92.30 yesterday when it fell to 92.40, the lowest since Jan. 12. The euro also traded near a record low against the Swiss franc after German Chancellor Angela Merkel this week ruled out any aid decision at the two-day summit in Brussels, pushing for the International Monetary Fund to be part of any rescue. Detrimental to Stability An appeal to the Washington-based IMF would be “detrimental to the stability” of the euro because it would show Europe is unable to keep its own house in order, European Central Bank Executive Board member Lorenzo Bini Smaghi said. “The image of the euro would be that of a currency that is able to survive only with the external support of an international organization,” Bini Smaghi said, according to a report yesterday in Germany’s Die Zeit newspaper. The euro was at 1.4261 francs from 1.4285, after sliding to a record 1.4233 yesterday. Fitch lowered Portugal’s credit rating by one step to AA- with a “negative” outlook. The nation’s gross domestic product is “significantly below” what is typical for a AA country, Fitch said. To contact the reporters on this story: Yasuhiko Seki in Tokyo at yseki5@bloomberg.net; Ron Harui in Singapore at rharui@bloomberg.net.

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