The euro earlier dropped to its lowest level since 2001 against the yen and slid versus the dollar as speculation German Chancellor Angela Merkel is preparing for a Greek default curbed demand for the 17-nation currency.
The Dollar Index, which tracks the greenback against six U.S. trading partners, climbed to an almost seven-month high as fresh Greek austerity plans failed to calm financial-market stress in the euro area.
The yen advanced at least 1 percent versus all of its 16 major peers.
Officials in Merkel’s government are debating how to shore up German banks in the event that Greece fails to meet the budget-cutting terms of its aid package and is unable to get a bailout-loan payment, three coalition officials said on Sept. 9. Merkel is due to hold talks on the debt crisis with European Commission President Jose Manuel Barroso today.