LONDON, Nov 23, 2010 (AFP) - The euro fell further against the dollar on Tuesday as traders shunned risk amid the eurozone's debt crisis and after North Korea fired artillery shells onto a South Korean border island, analysts said. In morning trading here, the European single currency dropped to 1.3592 dollars from 1.3622 late in New York on Monday. Against the Japanese currency, the dollar rose to 83.41 yen from 83.29 on Monday. "The markets had Irish political and budgetary woes on their minds last night, but this morning it had another set of risks to consider: geopolitical," said Kathleen Brooks, an analyst at trading group Forex.com. "The dollar strengthened sharply and risky assets including stocks and the euro sold off. Stocks still remain lower; however dollar gains have been pared as we move through the European session," she added. North Korea fired dozens of artillery shells onto a South Korean island on Tuesday, killing two people, setting homes ablaze and triggering an exchange of fire as the South's military went on top alert. In what appeared to be one of the most serious border incidents since the 1950-53 war, South Korean troops fired back with cannon, the government convened in an underground war room and "multiple" air force jets scrambled. "The yen, usually attractive during periods of risk aversion, actually sold off on the news due to its physical proximity to the tension; however it too has scaled back its losses," added Brooks. Meanwhile "problems in the eurozone haven't faded into the background," she said. "It's worth noting that the (Irish) bailout itself doesn’t impact the underlying problems of a lacklustre economic outlook and a chronic lack of competitiveness, these issues will take years to work out." Germany's finance minister on Tuesday said the fate of the shared European currency was at stake. "It's our common currency that's at stake," Wolfgang Schaeuble told Germany's parliament. Germany, Europe's biggest economy, must take responsibility "otherwise there will be untold economic and social consequences for our country", the minister added. Ireland on Sunday applied for help from the European Union and International Monetary Fund to help it cope with a gaping budget deficit and a deeply troubled banking system. While the amount of the package has yet to be revealed, European diplomats have said it could come to around 90 billion euros (120 billion dollars). In London, the euro changed hands at 1.3592 dollars against 1.3622 dollars late in New York on Monday, at 113.37 yen (113.45), 0.8534 pounds (0.8534) and 1.3441 Swiss francs (1.3483). The dollar stood at 83.41 yen (83.29) and 0.9890 Swiss francs (0.9896). The pound was at 1.5925 dollars (1.5956). On the London Bullion Market, the price of gold climbed to 1,364.60 dollars an ounce from 1,356.50 dollars an ounce late on Monday.

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