The euro hit a 15-month low against the pound and neared a decade low versus the yen as the investor focus returned to the eurozone’s ongoing debt woes.
A host of concerns emerged, including a report in Spain that the country was going to apply for loans from the eurozone bail-out fund and that Italian bank UniCredit was being forced to offer a steep discount in a €7.5bn capital-raising.
These helped to unwind the currency’s two-day rally, sparked by better-than-feared manufacturing activity in Germany and the rest of the region.
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