The euro dropped to an 11-month low against the US dollar Tuesday, with selling set to continue on concerns about a lack of unity among European nations to tackle the debt crisis and fears of more credit rating downgrades. Losses accelerated after the euro broke below its October low at $1.3145, followed by $1.31, and triggered a wave of automatic sell orders. Further key support levels lie around $1.30 and $1.2860, the 2011 low.
The euro fell as low as $1.3055 on Reuters data, its lowest since January 12, and nearly 2 cents below a session peak of $1.3236. It was last at $1.3083, down 0.8 percent. Against the yen, the euro slipped to a two-month low of 101.74 on Reuters data before rebounding to 101.93, down 0.8 percent on the day.