SYDNEY: The euro nursed heavy losses early in Asia on Tuesday, having suffered a steep drop across the board on fears that future bank rescues in the euro zone would come with the same stern conditions seen in Cyprus' deal.
The common currency traded at $1.2854, near a four-month trough of $1.2829 plumbed overnight and closer to retesting the November low of $1.2661. It has fallen more than 6 percent from a peak of $1.3711 reached on Feb. 1.
The euro had initially risen on Monday after Cyprus clinched a last ditch deal with international lenders to avoid a banking collapse.
But it quickly went into reverse gear when the head of the Eurogroup, Jeroen Dijsselbloem, said the rescue plan will serve as a model for dealing with future banking crises. He later appeared to backtrack, saying Cyprus was a specific case with exceptional challenges.
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