There was panic that a euro-zone debt crisis may spread beyond Greece and this took the euro to a dull note. Merkel told German lawmakers said: “We’re at a fork in the road. This is about nothing less than the future of Europe, and with it the future of Germany in Europe.” Adding to this, the euro also lost against the dollar when the German parliament’s budget committee approved a draft law on Germany’s contribution to a financial aid package for Greece.
BNY Mellon currency strategist Michael Woolfolk said: "The dollar is the safe haven of first choice. This is a market that is looking for any excuse to sell the euro. Good news out of the US or bad news out of Europe, take your pick."
The euro dropped as low as $1.2805. The euro was down 1.2 percent at $1.2820. The euro fell 2.3 percent to 119.96 yen. Pound declined against the dollar at $1.5068.