By: Hillel Fuld
The EUR was under additional pressure on Wednesday, slumping to a 10-month low vs the USD and a record low against the Swiss franc as quetions over aid for debt-stricken Greece affected the single currency.
The shift came ahead of an EU summit on Thursday and Friday, and after Germany indicated for the first time that it may accept European financial aid for Greece as a worst case scenario.
But Germany set forth several conditions for its support, including the need for the International Monetary Fund to make a "substantial contribution".
"The uncertainty over an aid package for Greece is clouding judgement towards the euro. Even if the IMF comes in, it shows the EU is not able to help itself," said Antje Praefcke, currency strategist at Commerzbank.
At 0850 GMT, the EUR was trading down around 0.8 percent at $1.3384 after hitting a 10-month low of $1.3366.
Traders said a raft of stop-losses had been hit through the previous 2010 low in the $1.3440/30 area in Asia, with option-related stops then hit through $1.3400/1.3390 in Europe.