The euro suffered fresh falls after a raft of weak data out of the region suggested that the economy is faltering rapidly.
Data out this morning showed that both the manufacturing and services sectors in the area is shrinking, highlighting that a recession is now a real possibility.
The euro zone Purchasing Managers Index for services slipped to a five year low of 48.3 in July from 49.1 in June. Euro zone manufacturing activity also slumped, falling to 47.5 from 49.2 in June. Both figures were below expectations.
At the same time , a key survey from Germany, the Ifo index also came in weaker than expected. The Ifo research institute said its July business climate index fell to 97.5 from 101.2 in June, dropping below analysts' forecasts of a decline to 100.0. The figure for June was revised down from 101.3.
"Poor German IFO data has combined with the already released PMI data to depressed the euro further," said Matthew Foster-Smith at Thomson IFR.
Elsewhere, the dollar continued to be propped up by falling oil prices and recent hints from U.S. rate setters that interest rates in the world's biggest economy may have to rise further.
Separately, the pound also fell prey to weak data, this time on the state of UK retail sales which suffered a massive slump in June. Retail sales in the UK plunged in June by their biggest amount since records began in 1986 but inflationary pressures, particularly within food, continue to mount, official figures showed today. The office for National Statistics said retail sales in June dropped by 3.9%.