SINGAPORE: The euro fell to its lowest level in more than three months as European officials begin to weigh the prospect of Greece withdrawing from the currency union.
The 17-nation euro weakened versus most of its 16 major counterparts before Greek President Karolos Papoulias is set to continue discussions with political party leaders on forming a national unity government.
A report due today may show the euro area’s industrial production growth moderated in March. The U.S. dollar headed toward parity versus its Australian peer as Asian shares extended a global slide in equities, boosting appetite for haven assets.
"As Greece emerges from the weekend without a government, we’re seeing some toll taken on the euro," said Mike Jones, a currency strategist at Bank of New Zealand in Wellington.
The euro lost 0.2% to $1.2897 at 9:09 a.m. in Tokyo after earlier touching $1.2882, the weakest since Jan. 23. It fell 0.1 percent to 103.18 yen.
The MSCI Asia Pacific Index of shares fell 0.1%. The Standard & Poor’s 500 Index (SPX) lost 0.3 percent on May 11 when the MSCI World Index of developed-market equities fell 0.2%. (Bloomberg/tw)