The euro slumped to a 16-month low against the dollar and ten-year trough versus the yen Thursday, while European stocks slid across the board, on resurgent eurozone debt strains triggered by Spain.
The European single currency struck $1.2831 at 1005 GMT -- the lowest level since September 2010. It also dived against the Japanese currency,to a ten-year low of 98.58 yen.
Spain's new economy minister on Thursday said his country's banks may face up to 50 billion euros ($65 billion) in bad loans, as he vowed to crack down on regional deficits in a new austerity drive.
Economy Minister Luis de Guindos' estimate of the banks' bad loans, provided in an interview with the Financial Times, was higher than many private forecasts. (AFP)