The euro tumbled to a four month low against the dollar on Tuesday as persistent uncertainty about debt laden Cyprus fuelled safe haven flows.

The single currency skidded to a low of $1.2843 amid stock market jitters as Cypriot politicians rejected a one off levy on savings to meet terms for a bailout.

Cyprus is now faced with the task of finding another way to raise the €5.8bn needed to meet conditions made by international lenders. If Cyprus does not meet the conditions it could lead to a default and exit from the Eurozone.

The euro later trimmed losses but still remained down 0.5% against the greenback as investors turned to the safe haven currencies.

The dollar index, which measures the US currency against a basket of six others, rose to 82.911, up 0.3% on the day.

Against the yen, the dollar was down 0.2% to ¥95.07 while the euro fell 0.6% to ¥122.57.

The euro was also down 0.5% against the British pound at 85.37p, after slumping to a five-week low earlier in the session, as nerves about the Eurozone dominated.



CJ

Related share prices