The euro struck a nine-month low point against the dollar on Friday as concerns mounted about a potential sovereign debt default in Europe and as investors awaited key US jobs data, analysts said.
The European single currency hit 1.3648 dollars, the lowest level since May 6, 2009.
In later trade, the euro stood at 1.3677 dollars compared with 1.3726 dollars late on Thursday in New York.
The dollar rose to 89.54 yen from 89.01 late Thursday.
"Clearly the release of the (US) non-farm payrolls data will be the next big trigger for the markets," said Jane Foley, an analyst at online trading firm Forex.com.
"A better set of numbers would clear reduce the tensions which have become evident across all markets, but US data cannot fix the budgetary problems of Spain, Portugal and Greece."
The euro was also pressured by the European Central Bank's decision on Thursday to maintain record-low interest rates, dealers said.
"Many factors are working negatively for the currency," said Hideaki Inoue, an analyst at Mitsubishi UFJ Trust and Banking Corp.
The European Central Bank welcomed Greece's plan to tackle its debt crisis but warned all eurozone countries to get their finances in order, with a danger of similar problems appearing next in Spain and Portugal.
Equity markets also dived on Friday.
"A spike in risk aversion following renewed concerns about the health of European sovereigns saw equity markets pummelled," NAB Capital analysts wrote in a note to clients.
"Against a backdrop of heightened risk aversion and equity market weakness, investors once again sought out the relative 'safe-haven' of the dollar and the yen."
Markets were on edge ahead of official US jobs data due out later Friday, although the main focus is shifting away from economic indicators.
"Economic reports are no longer such a decisive factor to move markets," said analyst Inoue. "Investors are watching political factors."
He cited US President Barack Obama's remarks on financial reform to rein in excessive speculation, as well as uneasy relations between Washington and Beijing and concerns for China's heated economy as key risks.
In London on Friday, the euro was changing hands at 1.3677 dollars against 1.3726 dollars late on Thursday, at 122.48 yen (122.19), 0.8705 pounds (0.8711) and 1.4705 Swiss francs (1.4641).
The dollar stood at 89.54 yen (89.01) and 1.0749 Swiss francs (1.0665).
