Euro hits two-month low after Ireland bailout

The euro plunged to a two-month low in Asia, as the official rescue package for debt-ridden Ireland failed to ease the market's worries about the health of eurozone economies.

The euro fell to US$1.3181 before recovering to US$1.3232 in afternoon trading in Tokyo, compared with US$1.3247 in US markets last Friday afternoon. The currency was quoted at 111.30 yen, flat from the level in US trade. It was quoted at 111.14 yen in Tokyo morning trade.

The unit began the day on a stronger note, reaching an intraday high of 1.3291 shortly after 8:00 am (CET) following the announcement yesterday of Ireland's €85 billion bailout.

But it gradually lost steam and slipped to its lowest level since late September on persistent fears that other nations, namely Spain and Portugal, may soon be lining up for help.