Signs the Euro zone's economic downturn is deepening and worries over a possible financial meltdown in Cyprus sent world shares, oil and the single currency lower on Thursday.
The falls would have been steeper but for earlier data showing a pick-up in Chinese factory activity and a reiteration on Tuesday by the US Federal Reserve of its commitment to its ultra-loose monetary policy stance.
The euro dipped briefly below $1.29 to the dollar and fell one per cent against the yen when the March readings of Purchasing Manager's Indexes (PMIs) from across the Euro area showed activity slowing from already weak levels.
"Given the deterioration in the political and financial market outlook there is really little hope from what we see that there is going to be a turnaround in the second quarter," said Chris Williamson, economist at index compiler Markit.
The falls would have been steeper but for earlier data showing a pick-up in Chinese factory activity and a reiteration on Tuesday by the US Federal Reserve of its commitment to its ultra-loose monetary policy stance.
The euro dipped briefly below $1.29 to the dollar and fell one per cent against the yen when the March readings of Purchasing Manager's Indexes (PMIs) from across the Euro area showed activity slowing from already weak levels.
"Given the deterioration in the political and financial market outlook there is really little hope from what we see that there is going to be a turnaround in the second quarter," said Chris Williamson, economist at index compiler Markit.