The euro hit a four-year low against the dollar overnight, hammering Asian markets and casting grave doubts over the response to Europe’s debt crisis.
A euro started the year worth $1.43. Last night it fell below $1.23. It has lost around two cents over the weekend.
That pushed many Asian indexes, including the Nikkei down by some three percent.
It all stems from investor fears that a 750-billion-euro rescue package agreed last week to prop up the single currency may not be enough.
There seems to be little market confidence that the likes of Greece, Portugal, Spain and Italy will be able to get to grips with their levels of soverign debt.
Eurozone finance ministers will discuss ways to stop the rot when they meet at 15:00 CET this afternoon.