<p>The euro tumbled as low as $ 1.3609, its lowest level since October 12, before recovering to $ 1.3697 at 0330 IST, down from $1.3851 late Monday.<br /><br />It was a big drop from the $ 1.42 level struck last Thursday, following the EU summit's reaching a comprehensive deal to resolve the months-long crisis in the euro zone, beginning with a new Greek debt reduction and austerity deal.<br /><br />"This throws all the summit's deliberations up in the air, even though they were considered lame in the first place," said David Morrison of currency specialist FX360.</p>.<p><br />"In consequence, investors are rushing to reduce their risk exposure across the board and fleeing into the relative safety of the dollar and US Treasuries."<br /><br />The euro fell to 107.29 Japanese yen, down from 108.28 yen, while the dollar rose to 78.34 yen from 78.16.<br /><br />The dollar was almost unchanged at 0.8869 Swiss francs. The British pound fell to $1.5950 from $ 1.6073.<br /><br />While the euro zone crisis will continue to drive markets -- France and Germany have already called another emergency summit to deal with the Greek issue -- traders will also be watching whatever comes out Wednesday from the meeting of the US Federal Reserve's policy board.<br /><br />While few expect any overt policy decisions -- interest rates should be kept at the ultra-low levels -- some anticipate signals in the language the Fed uses to indicate the medium-term direction of monetary policy.</p>
<p>The euro tumbled as low as $ 1.3609, its lowest level since October 12, before recovering to $ 1.3697 at 0330 IST, down from $1.3851 late Monday.<br /><br />It was a big drop from the $ 1.42 level struck last Thursday, following the EU summit's reaching a comprehensive deal to resolve the months-long crisis in the euro zone, beginning with a new Greek debt reduction and austerity deal.<br /><br />"This throws all the summit's deliberations up in the air, even though they were considered lame in the first place," said David Morrison of currency specialist FX360.</p>.<p><br />"In consequence, investors are rushing to reduce their risk exposure across the board and fleeing into the relative safety of the dollar and US Treasuries."<br /><br />The euro fell to 107.29 Japanese yen, down from 108.28 yen, while the dollar rose to 78.34 yen from 78.16.<br /><br />The dollar was almost unchanged at 0.8869 Swiss francs. The British pound fell to $1.5950 from $ 1.6073.<br /><br />While the euro zone crisis will continue to drive markets -- France and Germany have already called another emergency summit to deal with the Greek issue -- traders will also be watching whatever comes out Wednesday from the meeting of the US Federal Reserve's policy board.<br /><br />While few expect any overt policy decisions -- interest rates should be kept at the ultra-low levels -- some anticipate signals in the language the Fed uses to indicate the medium-term direction of monetary policy.</p>