Euro slides to new low against the dollar

The euro fell broadly on Monday, hitting a two-month low against the U.S. dollar and a record trough against the Swiss franc, with more losses expected on fears the euro zone sovereign debt crisis is spreading.

Speculation mounted over some sort of Greek debt restructuring, while doubts grew about Spanish austerity measures after Madrid's ruling Socialist party was defeated in regional elections and Italy suffered a credit outlook downgrade.

The euro fell beneath key support at $1.40, with weaker equity prices adding to pressure. Analysts expect the euro to remain under selling pressure this week, but added that its losses against the dollar could be limited should U.S. economic data disappoint investors.

"We have a confluence of negative events that have taken place over the weekend. All of that is compounding to create this toxic mix for the euro." said Mark McCormick, currency strategist at Brown Brothers Harriman in New York.

Source: Reuters.com