The European single currency tumbled to the lowest point since June on Thursday amid stubborn worries about Greece as the country tries to put its strained finances in order, analysts said.
The euro sank to 1.3827 dollars, a level last seen on June 22, 2009.
In later trade, the single currency stood at 1.3839 dollars compared with 1.3884 dollars late on Wednesday in New York.
The dollar fell to 90.83 yen from 90.99 late Wednesday.
Markets were awaiting interest rate decisions due Thursday from the European Central Bank (ECB) and the Bank of England (BoE).
The ECB meeting was set to be dominated by concerns over debt-ridden Greece and other countries with high public deficits that have pushed the eurozone into its worst-ever crisis.
Eurozone states should be ready to help fellow member Greece with the difficult austerity measures it is taking, the head of the International Monetary Fund said on Thursday.
The measures Greece plans to curb its public deficit and debt “are very difficult”, IMF head Dominique Strauss-Kahn told RTL Radio.
“The problem is difficult for the eurozone too but I think even so, the eurozone cannot afford not to help Greece in some form or another,” he said.
On Tuesday, Greek Prime Minister George Papandreou ordered a public salary freeze, a higher retirement age and a hike in petrol prices, supplementing a crisis plan unveiled last month to reassure the financial markets.
The EU approved the plans on Wednesday but also put Greece under close monitoring to ensure that it fully implements the tough medicine in the face of widespread popular opposition.
In London on Thursday, the euro was changing hands at 1.3839 dollars against 1.3884 dollars late on Wednesday, at 125.70 yen (126.38), 0.8738 pounds (0.8738) and 1.4702 Swiss francs (1.4713).
The dollar stood at 90.83 yen (90.99) and 1.0624 Swiss francs (1.0590).
The pound was at 1.5835 dollars (1.5892).
On the London Bullion Market, the price of gold fell to 1,103.95 dollars an ounce from 1,115.25 dollars an ounce late on Wednesday.
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