NEW YORK: The euro took a beating in forex markets on Wednesday, on new worries over the EU economic crisis, hitting its lowest level since January 11.
The common currency dropped below the $1.30 line, trading at $1.2981 at 2200 GMT from $1.3033 Tuesday. Earlier it hit a day's low of $1.2946.
Fresh concerns that the measures trumpeted at last week's EU summit will not solve the eurozone debt crisis took a toll on the currency.
"The market (is) realizing that the summit last week solved very little, sovereign debt is still a major issue and growth -- you can forget about it for the foreseeable future," said ETX Capital trader Manoj Ladwa.
"The continued pressure on markets has placed the euro in a very precarious situation. The $1.3000 exchange rate appeared to be the line in the sand for market participants, and yet, we have passed through said level with relative ease," said Christopher Vecchio of DailyFX.
Pessimistic comments from German Chancellor Angela Merkel on the need for years to mend the eurozone's problems likely added to the subdued mood that analysts said will last into next year.
"The European debt crisis will remain key for FX markets in early 2012," said Nick Bennenbroek at Wells Fargo Express.
"We see an eventual stabilization in market sentiment and continued ECB monetary policy easing, which should lead to a further euro decline."
The dollar picked up to 78.08 yen from 78.00 yen, while the British pound slipped to $1.5467 from $1.5480 Tuesday.
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