On July 9, the euro hovered near a two-year low and European shares fell that was primarily attributed to the darkening global growth outlook combined with low hopes of progress in debt crisis of Europe at a key meeting of finance ministers for driving investors away from risk assets.
Yields on benchmark Italian and Spanish bonds were also on way to unsustainable levels as the hopes raised by EU deal last month for helping indebted states and banks began to fade. The finance chiefs of the eurozone would be trying to flesh out plans agreed at the summit for giving greater oversight of the bloc's banks to the European Central Bank and using rescue funds of the region to reduce borrowing costs of countries.
"If leaders couldn't agree on details, there's little chance that the finance ministers will reach any further agreement, so anyone betting on another positive surprise might be disappointed," said Kimihiko Tomita, head of foreign exchange for State Street Global Markets in Tokyo.
"In terms of progress, we might actually see a bit more clarification on where we are, but I don't think progress is necessarily the word you use here. It's clarification rather than actually moving forward," said Rob Carnell, international economist at ING.
Euro was off a low of $1.2225, which it hit in thin early trade, to be up just 0.1 percent against the dollar at $1.2276.