Euro Drops to 8-Month Low as Finance Ministers Meet on Funds

The euro fell to an eight-month low against the dollar as European finance ministers weighed the threat of a default in Greece, which is making fresh budget cuts to secure an international bailout.

The 17-nation currency slid after weakening in the third quarter the most since June 2010. The yen rose against the dollar on demand for a refuge as sentiment at Japan’s biggest manufacturers remained below levels seen before a record earthquake struck in March. The pound sank against its major counterparts even as manufacturing unexpectedly increased.

“The key question will be whether Greece has done enough to secure the next tranche of its bailout fund,” said Jane Foley, a senior currency strategist at Rabobank International in London. “The concern about the euro-zone crisis, layered on top of poor growth expectations, weighs on the euro.”

The euro depreciated 0.6 percent to $1.3311 per dollar at 8:52 a.m. in New York, from $1.3387 on Sept. 30, after declining to $1.3310, its lowest level since Jan. 18. The euro decreased 0.8 percent to 102.28 yen, from 103.12. The dollar slid 0.3 percent to 76.84 yen.

The seven-day relative strength index for the euro fell to 25.8, staying below the 30 level for the second consecutive day. A reading below 30 indicates an asset’s price may have fallen too fast and may be due for a rebound.