Early trade in New York: euro hits 15-month low versus dollar

The euro fell below $1.29 for the first time in 15 months on Thursday as fear that Europe's debt crisis could worsen next year left traders scrambling to sell the currency before the calendar turns. Traders said thin trading conditions exaggerated the magnitude of the move, and better-than-expected US housing data encouraged some investors to take on some riskier trades, helping the euro recover some of its losses.
But at $1.2904, the euro remained less than a cent away from a session low of $1.2856, its worst showing since September 2010, and analysts said few traders were making big bets on an imminent euro rally. The euro also hit a 10-year low against the yen for a second straight day. It last changed hands at 100.48 yen, down 0.3 percent. The dollar was down 0.2 percent against the yen at 77.73 yen, while sterling fell 0.5 percent to $1.5374.