The euro fell to session low of $1.3842, according to Reuters data, and last traded at $1.3846, down 2.1 percent on the day.

The dollar also fared well against the Swiss franc and hit a session high of 0.8775. It last traded at 0.8767, up 1.6 percent on the day.

US stocks tumbled while Treasuries gained. In a sign that Europe's woes were far from over, Italian and Spanish bond yields soared, prompting the European Central Bank to buy the debt, while shares of European banks came under heavy selling pressure.