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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.