New York: The euro fell beneath the $1.33 (Dh4.8) level on Friday, as debt troubles continued to roil markets with little end in sight to the Eurozone crisis.
Amid mounting concerns that the bloc's political leaders cannot produce a solution to the Eurozone debt crisis, the European single currency at one stage plunged to $1.3212, its lowest point since October 4.
It reached $1.3240 by 2200 GMT versus $1.3347 the day before.
Dealers said investors appeared to have lost confidence that European leaders can tame the crisis snapping at their heels, with the euro slumping as Italy's debt problems came to the fore.
News that Rome had to pay record and dangerously high rates to raise fresh funds was unnerving when coupled with a French and German warning that if Italy were to collapse, it would take the euro with it.
Miracle needed
"As confidence that a solution to this crisis might be forthcoming and that the euro will survive has evaporated, [it is] no surprise that international investors have chosen to ditch the euro in favour of more safe-haven currencies," said Howard Wheeldon, strategist at brokers BGC Capital.
"The reality is that as those charged with leading the Eurozone out of this crisis appear to have moved further apart, it seems to me that short of a miracle the euro will just keep heading south."
The debate on what to do next appears to turn now on the European Central Bank's role, but at a meeting on Thursday it was clear French President Nicolas Sarkozy and German Chancellor Angela Merkel remained as far apart as ever.
Merkel insists the ECB should focus on its main task — combating inflation — while Sarkozy wants it to become a lender of last resort, acting as a backstop in the bond markets to help out struggling Eurozone member states.
The dollar fetched 77.72 yen versus 77.12 on Thursday and 6.3789 yuan versus 6.3659.
The pound weakened to $1.5436 from $1.5496.
