The 16-nation currency dropped 0.9 percent to $1.3125 in New York on Tuesday and reached $1.3064, the weakest since Sep. 21 at a time when the Ireland's sever economic crisis that led to a full-blown bankruptcy for the country's banking system has prompted grave concerns that the eurozone would break up, Bloomberg reported.
On Sunday, European Union (EU) finance ministers granted the Irish government a bailout package worth 85 billion euro in order to help the country extricate itself from its debt crisis.
According to final figures from the New York Stock Exchange, the euro also fell 0.7 per cent against the Japanese yen to 110.60, from 111.37 and reached 110.26, which is the lowest since September.
The eurozone plunged into crisis in early 2010 with the specter of insolvency looming for countries such as Greece, Portugal, Italy, Ireland and Spain.
The brewing financial crisis dealt a devastating blow to the Greek economy, forcing the EU and International Monetary Fund to pay the debt-laden country a 110-billion-euro bailout in an effort to salvage the economy.
Barely six months since Greece was bailed out, another economic meltdown broke out this time in Ireland as the country's banking sector hit the rock-bottom early in November.
The contagious crisis has cast a harsh shadow of doubt over the long-term survival of the eurozone's single currency, the euro.
The fallout comes as fears of further bailouts in Portugal, Belgium and Spain have sparked similar concerns that the euro would came under more pressure in near future.
According to Canada Marketing Association -- the largest marketing association in Canada -- the cost of insuring debts of Portugal and Spain would hit a record high as financial analysts say Spain is more likely to need help to finance its ballooning debt.
The Spanish government, however, insists that it does not need a bailout.
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